Nordica negotiations start with all interested parties

A Nordica Bombardier CRJ900 taking off from Tallinn.
A Nordica Bombardier CRJ900 taking off from Tallinn. Source: Ken Mürk/ERR

Estonia has decided to sell its troubled airline Nordica and negotiations with several potential buyers are already underway. Greater clarity is expected by the end of the year.

"The State has decided to sell Nordica. The starting point for the sale is that there is no set objective, whether to sell it in its entirety, in parts, separately, or together with the Transpordi varahaldus. Today, all these scenarios are possible," said Sander Salmu, deputy secretary general for transport at the Ministry of Climate.

Salmu said three or four aviation companies operating in the European market have shown interest in Nordica.

We have met a couple of companies and established first contacts, now it's time to move on to substantive discussions with them," said Salmu. 

The first round of discussions must be held by the end of December to get an overview of their interests and expectations, he said.

Aviation expert Sven Kukemelk told "Aktuaalne kaamera" that the Nordica product platform could be of particular interest to a potential buyer.

"These are all the companies that are now also involved in production. I can't go into specifics, but these are companies like MES Aviation from the American market. Avion Express from the Baltic market, Avia Solutions Group, also City Jet, Air Nostrum. These are companies that are in the production business, that have shown interest, have asked questions in different circles. There is clearly interest in Nordica, it has some value," he said.

However, Kukemelk said, it is not worth expecting a large profit from Nordica's sale, but important conditions for the state could be set at the same time.

"Today, when the chairman of the council has talked about 70 million at the beginning of the year, I think that today the state could hold a competition where the condition is to keep the head office in Estonia for ten years, so that we can get these taxes and give them away for a euro or a symbolic amount, because today at the moment it is very difficult to see the great financial value that has remained in this company," Kukemelk found.


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Editor: Mait Ots, Helen Wright

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