The Estonian government’s Nordic Aviation Group (Nordica) and its subsidiary Xfly filed for bankruptcy after privatization talks with Danish investor Lars Thuesen collapsed.
Thuesen, the owner of Danish charter airline Jettime, had expressed interest in acquiring Nordica and submitted a bid in October. However, his withdrawal followed the cancellation of a major aircraft, crew, maintenance, and insurance (ACMI) contract between Xfly and Scandinavian Airlines (SAS) on September 25.
The termination of the SAS contract, which accounted for 90% of Xfly’s revenue, left the group financially unviable. Thuesen explained, “Overall there were too many risks facing the company and too little time to solve them. Losing 90% of your revenue two months before the winter season starts killed it.”
Nordic Aviation Group CEO Remco Althuis acknowledged the significant efforts made to stabilize the airline since its turnaround process began 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. After privatization talks failed, Nordic Aviation Group informed all employees and partners of its intention to file for bankruptcy.”
Founded by the Estonian government in 2015 following the bankruptcy of its predecessor, Estonian Air, Nordica employs over 600 staff worldwide. The company operated a fleet including one Airbus A320-200, leased to Bamboo Airways, and Xfly’s six ATR72-600 and eight CRJ900 aircraft.
The group will now return its aircraft to lessors as part of the bankruptcy process. This development comes shortly after the U.S. budget carrier Spirit Airlines also filed for bankruptcy on November 18.
