Estonia’s Climate Minister, Kristen Michal, has proposed the suspension of the sale of Nordic Aviation Group (NAG) due to unsatisfactory financial offers and unsuitable additional terms presented by bidding companies.
The government aims to work with a privatisation advisor to secure the best market price for NAG, while focusing on reducing costs, negotiating contracts, and improving profitability to ensure stable management and prepare for privatisation.
There are concerns that NAG may struggle due to past mismanagement, but the company’s plans for cost-cutting and generating additional income are expected to enable continued operations and future sale attempts either independently or in partnership with state-owned Transporti Varahaldus (TVH).
The Ministry of Climate and Finance will review NAG’s terms-of-sale over the next six months to assess the need for restructuring, with the goal of maintaining operations, preserving jobs, and safeguarding the company’s value.
