Estonia: Court of Auditors strongly criticizes Nordica

The Audit Office of the Republic of Estonia has assessed the conduct of the Nordic Aviation Group, which includes Nordica, Xfly and Transpordi Varahaldus, extremely critically. The government is advised to sell the state-owned group of companies.

Nordica was initially launched as a “virtual airline” as the successor to Estonian Air. Due to the lack of AOC, they initially cooperated with Adria Airways. Flight operations were later taken over by the company's subsidiary Xfly and a sales cooperation was entered into with Lot, which has now ended. Nordica has had its own AOC for a long time and hit the headlines in connection with Marabu Airlines. Xfly operates on ACMI and charter assignments for several carriers.

The government of Estonia plans for Nordica, Xfly and the leasing company Transpordi Varahaldus to merge and then be sold. “Nordica’s course suggests that the state was not a sufficiently competent or interested owner in a business area as complex as aviation,” Estonia’s Court of Audit said.