Following initial financial results revealing heavy losses by the Estonian airline, a ministry document indicates it will deliberate the sale of state-held shares in the airline.
Estonian state-owned carrier Nordica suffered losses of €2.3 million in 2018, according to the company’s recently released initial financial results.
Toomas Uibo, director of marketing and communications for Nordica, told the Estonian state broadcaster ERR that the loss did not reflect the economic results of its subsidiary Regional Jet, which is 49% owned by LOT and whose results will be released later.
The flag carrier’s unconsolidated turnover totalled €7.1 million last year, up by €7 million compared to 2017.
Nordica says it served just under 700,000 passengers on its Tallinn route network last year. The company’s consolidated passenger numbers, reflecting the results of both Nordica and Regional Jet, were more than 2.2 million.
Toomas Tiivel, supervisory board chairman of Nordica, told ERR on Wednesday that the company’s export business is performing well, but admitted that operating flights from Tallinn was unprofitable.
Estonia’s Ministry of Economic Affairs and Communications is set to deliberate a transfer of the state’s holding in Nordic Aviation Group.
The Ministry of Economic Affairs and Communications has indicated in a ministry document that it will assess the transfer of a majority or minority holdings in the group and in aircraft lease company Transpordi Varahaldus in the future, the Baltic news agency BNS reports.
The relevant document further states that the strategic goal of the state in owning part of Nordica is to earn revenue from ownership by providing airline connections between Estonia and European centres, as well as other commercial aviation operations.