newstodate.aero

Oct 28, 2021 (newstodate): The Estonian state is preparing for a process to bring the three aviation companies Nordica, Regional Jet (Xfly) and Transpordi Varahaldus under one roof.
   The aim is to establish a holding company, allowing the three entities to run business fully independently according to market conditions in their segment.
   Setting up the state-owned holding company would also pave the road for a future privatization of the planned aviation group.
   Today, Regional Jet/Xfly is a subsidiary of Nordica, while Transpordi Varahaldus is Nordica's leasing company providing  Nordica and Regional Jet with aircraft leasing services and aircraft spare parts and components.
   Apart from the structural technicalities is also the strategic aim of freeing Estonia's aviation business to secure the country's air connectivity by providing an alternative under national control to foreign airlines today serving the Estonian market.
   At Estonia's Tallinn Airport, the Latvian carrier airBaltic in 2020 grew its market share from 21 to 27 percent, while the airport saw an overall drop in passenger volumes by 73.6 percent, y-o-y.
    -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, Erki Urva, Nordic Aviation Group CEO, told newstodate in August 2020.