On Thursday, the government gave preliminary approval to continue negotiations for the sale of Nordic Aviation Group and Transpordi Varahaldus. Danish airline owner and airBaltic minority shareholder Lars Thuesen, who owns Jettime and holds a 2.03 percent stake in airBaltic, has expressed interest in purchasing both companies.

The sale's completion depends on Nordica's board meeting its business plan targets for the coming months and finalizing transaction details with potential buyers.

"The question is whether Nordica can secure agreements within the next week to ten days to put planes that were grounded into operation. For the buyer, it's crucial that at least 60 percent of the fleet is in operation. By the end of next week, we will know if we've reached this goal and if we can proceed with the privatization," said Infrastructure Minister Vladimir Svet (SDE).

ERR previously reported Thuesen's interest in Nordica. In addition to owning Jettime, Thuesen has a small stake in airBaltic.

According to Svet, KredEx has provided a loan to Nordic Aviation Group amounting to €7.5 million with interest, which the state hopes to recover.

"We also know that Nordica contributes over €10 million annually in various taxes, including €6 million in payroll taxes. We would like to see these tax revenues continue to support our budget after privatization," Svet added.

Nordic Aviation Group began operations in 2015. Until fall 2019, Nordica operated flights from Tallinn under its own name, but has since transitioned into a subcontracting airline. As of mid-October, the company employed 579 people, including 286 in Estonia, either directly or through staffing agencies.

Transpordi Varahaldus primarily leases aircraft and aircraft-related parts. Its fleet includes seven Bombardier aircraft, all of which are leased by Nordica.

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