newstodate.aero

Apr 28, 2020 (newstodate): The Estonian Government has declared its readiness to step in to bolster the sustained operation of the state-owned carrier Nordica.
   Hard hit by the coronavirus issue, Nordica as well as the ACMI provider Xfly has been forced to lay-off staff, and currently only four out of 23 aircraft in the fleet are in the air on one PSO route as well as serving SAS in Sweden and Denmark.
   Now, the Estonian government is willing to inject EUR 30 mio into the company on certain conditions; one is to set up a Holding Company with Nordica, Xfly and the leasing arm Transpordi Varahaldus as sister companies, and another is that Nordica must present a business plan to the government within two weeks from now.
   -The new business plan must comprise an oversight over routes to be served by Nordica out of Tallinn to grant connectivity to Estonia in a challenging competitive environment, says Toomas Uibo, Nordica Head of Marketing and Communication.
   It is understood that the planned new Holding Company will be fully-owned by the Estonian state, while LOT will so far continue as part-owner of the daughter company Xfly that is positioning  itself as a long-term strategic provider of capacity for European commercial airlines including SAS and LOT.