Estonia’s Nordic Aviation Group files for bankruptcy after privatisation collapses

Estonian carrier Nordic Aviation Group has ceased operations and filed for bankruptcy after a proposed investor pulled out of a planned privatisation. The group, which operates under the Nordica brand, says it was informed on 18 November that potential investor Lars Thuesen would not proceed with the privatisation plan, which was initiated last year. After assessing the group’s economic situation, the management board decided to cease the airline’s operations and file for bankruptcy for both Nordic Aviation Group and subsidiary Regional Jet, which is branded as Xfly. Nordic Aviation emerged in 2015 as Estonia’s government looked to a successor for the collapsed flag-carrier Estonian Air. While sale talks with two interested parties had previously broken down earlier this year, last month Nordic Aviation said Thuesen – owner of Danish carrier Jettime – had submitted a bid. The company says final discussions on the privatisation continued in the past week. “However, on [18 November], the potential investor informed us about his intention not to proceed with the privatisation, as the associated risks were too high,” says Nordic Aviation chair Kadri Land.<br/>