newstodate.aero

Oct 19, 2020 (newstodate): After a prolonged period of uncertainty, the Estonian government has finally agreed to release the promised grant to bolster the capital base of Nordica.
   The 22 mio euro cash injection will allow the airline company to balance the revenue losses incurred by the ongoing Covid-19 pandemic, and the state will also negotiate an 8 mio euro loan to Nordica.
   A condition for state aid to Nordica is that the state must recover the aid from the company within seven years - or get privatized.  
   On the other hand, the Estonian state sees Nordica as a strategic asset securing the sustained availability of connectivity regardless of external airlines' provision of flights serving the Estonian society, so privatization is not on the agenda.
   A final precondition for releasing the state aid is the finalization of negotiations with LOT for ending the Polish partner's co-ownership of Xfly, Nordica's ACMI carrier, where LOT owns 49 percent of the stake since November 2016.
   Established in 2015, Xfly offers offering regional flight and aircrew services for airline companies.    
   Xfly employs 260 people in Tallinn, 150 in Denmark, 60 in Sweden, and an additional 35 specialists in other countries.    
   With a fleet planned to grow in 2020 to seven Embraer 190/195, 12 Bombardier CRJ900, and nine ATR72-600 aircraft, Xfly's customer portfolio includes European airlines SAS, LOT, Luxair, AirSERBIA, and flybe.