newstodate.aero

Aug 14, 2020 (newstodate): The EU green light for the Estonian state to offer financial help to Nordica is one significant step - but the issue is still to be finally decided upon by the Estonian government.
   -We expect the government to make a final decision within the coming two weeks, after which the money can then be transferred to Nordica, says Erki Urva, Nordic Aviation Grop CEO.
   -Nordica is indeed in a difficult situation; we have some operations for SAS in Sweden and Norway and are operating two PSO-routes in Sweden out of Stockholm Arlanda - but apart from this, demand in the market is as low here as everywhere.  
   -Plans have long been around for Nordica to be reorganized into three separate units under a joint holding company, but this is actually not too easy as there are different preconditions to be met. The process is thus not completed, and may even take months, or even a year.
   -For instance, the Polish carrier LOT is part-owner of X-fly, and there are issues to be solved with aircraft leasing contracts by our leasing arm, Transpordi Varahaldus. Negotiations are performed with LOT concerning the ownership of Xfly, but there is still some way to go on this issue as well.
   -The Estonian government also requires Nordica to be ready to step in to secure our country's connectivity if important routes now served by other airlines might be closed down.  
   -Today, airBaltic is a major provider of flights out of Tallinn but Estonia does not of course have any control over foreign airlines' strategies or planning. And the experience from Lithuania has taught us a lesson. We have no plans for entering the market for scheduled flights, but must be ready if required by the government.
   -So all in all, there are many challenges ahead. But with the injection of fresh shareholding capital and a loan from the state we are working determinedly on solving the issues one by one, says Mr Urva.