Estonian state-owned airline Nordic Aviation Group (NAG), which includes Nordica and Xfly, is ceasing operations and filing for bankruptcy. The reason was the unsuccessful attempts to find an investor as part of the privatization initiated by the Estonian government in late 2023. The authorities had no strategic reasons to preserve Nordica, as the company provided exclusively outsourcing services.
The crisis worsened after the loss of a key contract with SAS for servicing routes in Sweden. In October 2024, the cooperation was recognized as unprofitable, which led to the decision to sell Nordica. However, the potential investor refused to continue negotiations, citing high risks. NAG’s supervisory board officially announced the start of bankruptcy proceedings, and the management notified employees and partners.
NAG CEO Remko Althuis said that in the coming days the company will return the leased aircraft to lessors and complete the formalities related to bankruptcy. As a result, 579 employees, including 286 in Estonia, will be left without jobs.
According to Aerotime Hub, NAG’s active fleet includes one A320-200 and three Bombardier CRJ 900ERs. Nordica’s website states that the company’s total fleet consists of 19 aircraft, including nine Bombardier CRJ 900s, nine ATR72-600s and one Airbus A320.