20/11/2024
Nordic Aviation Group Files for Bankruptcy
On Monday, November 18, Nordic Aviation Group was informed by the potential investor Lars Thuesen about the intent not to proceed with privatization. Therefore, assessing the company's economic situation, the Management Board has decided to cease the airline's operations and file for bankruptcy of Nordic Aviation Group AS and Regional Jet OÜ (Xfly).
"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," explained the CEO of Nordic Aviation Group, Remco Althuis.
Remco Althuis noted that the company takes great pride in the incredible results achieved during this process, which have placed the company on solid financial ground since spring 2024. "We have succeeded in serving our clients to the highest industry standards, as evidenced by above-average punctuality and service levels. This has been recognized by our valued cooperation partners, who have commended our team for the excellent service provided," he added.
The shareholder of Nordic Aviation Group (and its subsidiary Xfly), the Government of Estonia, initiated the process of privatizing the company late 2023. The final discussions on privatization have been ongoing during the past week, with both sides showing goodwill to reach a mutually acceptable outcome.
"However, on Monday, the potential investor informed us about his intention not to proceed with the privatization, as the associated risks were too high," explained 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."
According to the CEO Remco Althuis, the Management Board will file for the bankruptcy of Nordic Aviation Group AS and Regional Jet OÜ according to the applicable regulation. The company has informed all its employees and cooperation partners, including the lessors of the airplanes about the intention to file for bankruptcy.
"Our aim is to hand over the aircraft Nordic Aviation Group and Xfly are using to the lessors at the first possible time, most likely during the upcoming days," explained Althuis. "This is accompanied by all relevant formalities applicable to bankruptcy proceedings, including notifying the Estonian Unemployment Fund.”
