Nordic Aviation Group operates the brands Xfly and Nordica and is planning to expand rapidly in the near future, Monday's "Aktuaalne kaamera" (AK) reported.

It will increase its number of employees to 750 from the existing 500 and wants to outsource flight services to major airlines across Europe.

Nordica manager Jan Palmer said the company is now signing new contracts with other airlines and will transport passengers using larger Airbus 320 planes.

"When we get our Airbus 320 now, the first one, in mid-October, then we will have 17 aircraft and all are utilized. If we are lucky with the kind of contracts we talked about it will be a least six more aircraft next summer," he told AK.

He said the plan is to grow into the largest player in Europe in its business niche.

"In 2021, we made a profit which was outstanding if you look at the aviation industry at that time. We are still doing pretty OK in 2022, I cannot give you any numbers, but we are still in the black. The concept works, so hopefully, it will work even better when we get more into this Airbus 320 business which we have just started."

The Ministry of Economic Affairs and Communications said outsourcing work has been profitable. At the moment many other scheduled companies are struggling and seeing losses.

The state now plans to privatize the venture and all Nordica-related companies will be merged into a single group at the start or 2023.

Vice Chancellor for Transport Ahti Kuningas said this will be a decision for the next government, after the election in March.

Over the last five years, €100 million has been invested in the company by the state.

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