newstodate.aero

May 15, 2020 (newstodate): The Estonian carrier Nordica is eagerly waiting green lights for the state to throw in a life-line in the form of a much-needed cash injection.
   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; another is that Nordica must present a convincing business plan to the government.  
   -The plan will be presented to the Government within the coming days, but as there are many critical issues on the table, we do not know when we get the final decision, says Toomas Uibo, Head of Marketing and Communication.
   -The business plan will be only partly public because it contains business secrets, adds Mr Uibo.
    Earlier, Mr Uibo told newstodate that 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.
   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.
   According to media reports circulating, the future involvement of LOT in Xfly is however also being negotiated, aiming at bringing the company under full Estonian ownership.