Estonia’s Nordic Aviation Group, operating as Nordica, and its subsidiary Xfly are set to file for bankruptcy following the collapse of investment talks with Lars Thuesen due to excessive risks.
The airline plans to comply with Estonian laws regarding employees during its bankruptcy process and intends to return leased aircraft as it ceases operations.
The financial struggles of Nordica were intensified by the termination of a critical ACMI contract with SAS, resulting in a significant revenue loss just before the winter season.
The Estonian government is now accelerating efforts to dispose of assets as part of the liquidation process, which must be completed by mid-2025. Nordica has one A320, ES-NAB, while Xfly has four ATR72 and eight CRJ900.
The Nordic Aviation Group was established in 2015 as a portenial national airline after the cessation of Estonian Air, with a legacy that includes a rich aviation history dating back to 1921.
The group operated two brands, Nordica and Xfly, focusing on ACMI (aircraft, crew, maintenance, and insurance) services for major airlines while expanding its operations in charter and PSO markets across Europe and beyond. It has 700 employees and its own Aviation Academy.
