The Estonian government has broken off talks with two potential investors regarding the sale of the airlines Nordica and Xfly. According to Infrastructure Minister Kristen Michal, the sales process has been put on hold for the time being.

Both aviation companies are to be continued under state ownership, but both companies are due to be downsized. In other words: job cuts now seem to be a done deal. According to reports, negotiations with two potential buyers failed because the group's own leasing company TVH should have been separated from the Nordic Aviation Group.

This would have meant that only Nordica and/or Xfly could have been acquired, but not the internal aircraft leasing company. However, the potential buyers also bid for the Lessor, which the government did not want. The talks have now ended and the loss-making airlines will – for the time being – continue to operate under state ownership. However, both carriers are due to be downsized. The Estonian government plans to make another attempt at sales at a later date.