In anticipation of privatization, state-owned company Nordica, has signed a contract for the lease of four aircraft, while negotiations are ongoing in relation to the others. Nordica operates eleven aircraft, of which only one is owned by the company. All its other aircraft are leased, with Nordica seven coming from Transpordi Varahaldus.

As things stand, seven of the aircraft would be out of service, at the end of October but Nordica wishes to retain its crews. According to aviation expert Sven Kukemelk, the idle aircraft will lead to costs that drive the company towards bankruptcy.

"In all likelihood they (Nordica - ed.) will run out of capital and the only way they (Nordica - ed.) could survive this winter is if they have a friendly creditor. The only friendly creditor is Transpordi Varahaldus. If the Transpordi Varahaldus is instructed not to collect payments for the aircraft, for example during the winter period, it would be possible for [Nordica] to survive," Kukemelk said.

Nordica's CEO Remco Althuis replied in writing that the suspension of lease payments "is not foreseen in the business plan presented by the management to the board or to potential investors."

Asked whether a temporary suspension of Transpordi Varahaldus' claims could improve Nordica's financial situation, Sander Salmu, Nordica supervisory board member and deputy secretary general of the Ministry of Climate, said he did not think it appropriate to comment in great detail on both this financial plan and the progress of the negotiations.

"We will give it time. The aim is still to arrive at an offer within a couple of weeks that could be presented to the government for a decision," said Salmu.

However, for Danish businessman Lars Thuesen, who has expressed interest in buying Nordica, it is also important that the company is able to conclude contracts for the aircraft that remain operational. Nordica CEO Althuis expects that during the upcoming winter season, only around of 75 percent of Nordica's fleet will be in service.

Salmu also responded to the question of what would happen if the sale fails to go ahead. "Today we are dealing with the scenario of presenting this possible solution of privatization to the government, and that is what we are working on," he said.

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