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Aug 01, 2023 (newstodate): Facing a steep loss-making development, Estonia's Nordic Aviation Group AS has called in external expertise to start an immediate turn-around process.
   -In the past few months, the economic situation of Nordica has deteriorated sharply, and the company's revenues have turned out to be considerably lower than expected. In turn, the costs significantly exceed the revenues, says David O'Brock, the chairman of the Supervisory Board of Nordic Aviation Group, in a release out today.
   -The situation in the aviation market is very difficult – there's a delay in leased aircraft with which Nordica is supposed to service its clients, there is a deficit in both workforce and equipment; the costs of all inputs have risen. All those aspects have turned Nordica's business onto a path of loss.  
   -To ensure the company's sustainability, the Supervisory Board in coordination with the Shareholder decided to bring international aviation expertise into the company in order to turn the company's business onto economically solid ground.
   To restructure the company's business, the Board has hired international aviation consultancy Knighthood Global for a period of up to six months, during which all operations and cost structure of the company will be revised.
   According to the chairman of the Supervisory Board, an additional reason for the current status of the company, besides unfavorable external conditions, is an overly optimistic expansion strategy adopted late last year, which in turn has negatively affected the financial situation of the company.
   Last week, Jan Palmer, CEO and Chairman of the Management Board since 2018, submitted a letter of resignation to the Supervisory Board, and the Board approved the resignation of the CEO on July 26.
   The Board has appointed Remco Althuis, the lead of the turnaround consultancy team, as the company's new interim CEO.
   Nordic Aviation Group AS, is a Capacity Provider Airline group, fully-owned by the Republic of Estonia.    
   Headquartered in Tallinn, the group has its operational bases in Tallinn, Vilnius, Stockholm, Aarhus, Copenhagen, Turku, Lisbon, Larnaca, Munich and Hamburg.    
   The group operates flights under two brands, two IOSA-certified AOC’s - XFLY operating nine ATR72-600 and nine CRJ900, and NORDICA operating four A320 aircraft.    
   Xfly and Nordica operate within the framework of long-term ACMI partnerships with SAS, TAP and MARABU and for the summer 2023 with Cyprus Airways.