Nordic Aviation Group decided to wind up Nordic Aviation Group AS and Regional Jet OÜ (Xfly) operations after negotiations with investor Lars Thuesen fell through on Monday (November 18), a press release said.

"Unfortunately, the potential investor announced on Monday that he does not intend to proceed with the privatization due to excessive risks," Kadri Land, chairwoman of the Nordic Aviation Group's Supervisory Board, explained.

"Therefore, the board of directors informed the supervisory board of its decision to terminate Nordic Aviation Group and Xfly and to file for bankruptcy."

Remco Althuis, CEO of Nordic Aviation Group, said the board will file a bankruptcy notice as soon as possible.

The company has already informed its employees and business partners, including aircraft lessors, of its intention to file for bankruptcy.  

"Our aim is to return the aircraft used by Nordic Aviation Group and Xfly to the lessors as soon as possible, probably in the coming weeks," he said. "This will involve all the formalities related to the bankruptcy proceedings, including notifying the Estonian Unemployment Insurance Fund."

The firm had 579 employees in October, of those 286 are employed in Estonia.

The Republic of Estonia is the sole owner of Nordic Aviation Group and its subsidiary Xfly.

Nordica, which flew from Tallinn under its own name until the fall of 2019, now offers outsourcing services. 

The government moved to privatize the company at the end of 2023.

Nordic Aviation Group started operations in 2015.

--

Follow ERR News on Facebook and Twitter and never miss an update!