Nordic Aviation Group, an Estonian company, has announced in a press release on 18 November that it has filed for bankruptcy following the retraction of a potential investment aimed to privatise the company.
The airline’s Management Board has decided to cease all operations of both Nordic Aviation Group and Xfly, its regional jet subsidiary. Discussions around privatising the company began in late 2023 between the airline’s shareholder and the Government of Estonia. However, these discussions were finalised in the past week, with a mutually agreed outcome.
“Nordic Aviation Group and Xfly have gone through a challenging path over the past 15 months since the airline began its turnaround process in August 2023. This journey has been marked by immense efforts from the entire team to bring the airline to a new and sustainable footing,” said the CEO of Nordic Aviation Group, Remco Althuis. “We have succeeded in serving our clients to the highest industry standards, as evidenced by above-average punctuality and service levels. This has been recognised by our valued cooperation partners, who have commended our team for the excellent service provided.”
“On Monday, the potential investor informed us about his intention not to proceed with the privatisation, as the associated risks were too high,” commented the Chairwoman of the Supervisory Board of Nordic Aviation Group, Kadri Land. “Consequently, the Management Board informed the Supervisory Board about its intent to cease the operations of Nordic Aviation Group and Xfly and start the necessary proceedings to file for bankruptcy.”
Photo: Nordic Aviation Group
