"We keep talking about a national airline, but the fact is that Nordica has not been flying from Tallinn since 2019. It is an airline that we are maintaining through the state budget, and personally, I think we should strive to privatize Nordica as quickly as possible so that Estonian taxpayers no longer have to deal with regional aviation," Svet said on Monday's "Terevisioon" morning program.

The minister added that both Estonian Air and Nordica have proven this business model does not work. Moving forward, the focus should be on supporting Tallinn Airport, he believes.

"If we want flights to operate from and to Tallinn, we should focus on our airport and provide it with more resources in the future for route subsidies so that airlines are incentivized to fly here. I think this is the most viable strategy," Svet told the show.

In the short term, Svet said it is crucial to see whether Nordica's board and council can find an alternative for the flights that will be canceled after the SAS contract ends.

However, time is running out – the deadline is October 15.

"If the Nordica team is unable to cover its entire fleet and crew with contracts, then we will need to consider possible scenarios. When we talk about Nordica as a whole, it is also important to consider Transpordi Varahaldus and its fleet of aircraft. That is why I do not want to jump to conclusions. I want to allow the board and council to do their work, and we'll have a clearer picture in two weeks," the SDE politician said.

Nordica has also managed to turn a profit over the last three months, he noted.

"They are currently about €3 million in profit. Compared to the beginning of last summer, flight delays have decreased tenfold. The right conditions are in place, but time is indeed short."

Svet said the government decided to privatize Nordica at the end of 2023 but failed to find a suitable investor.

"There were two interested parties — one did not meet the qualifications, and the other qualified but could not verify that their funds were not from... let's say, questionable sources," Svet explained.

Another potential buyer has also expressed interest, the minister said, but declined to name the party due to ongoing negotiations.

"But the key point is that these are not castles in the air. These are real companies, real people with real money. Ultimately, it all depends on whether Nordica can secure coverage for the flights that will be lost when the SAS contract ends," Svet said.

Last week, it was announced that airline SAS would end its cooperation with Nordic Aviation Group and that flights between Tallinn and Stockholm would be reduced. Nordica is now seeking new partners from outside Europe.

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