The Nordic Aviation Group (Nordica) and its subsidiary Xfly, both under the Estonian government, have declared bankruptcy today following the withdrawal of investor Lars Thuesen from negotiations regarding privatization.

Thuesen, the owner of the Danish charter airline Jettime, had submitted a proposal to purchase Nordica in October. The situation for Nordic Aviation worsened after Scandinavian Airlines (SAS) announced the termination of its aircraft, crew, maintenance, and insurance (ACMI) agreement with Xfly on September 25.

The loss of this contract became a significant obstacle for Thuesen, who elaborated in a statement, "Overall there were too many risks facing the company and too little time to solve them. It is sad, because it is two good companies, where a lot of positive things have happened over the last 12 to 18 months. However, losing 90% of your revenue (the SAS contract) two months before the winter season starts, killed it."

CEO of Nordic Aviation Group Remco Althuis commented, "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."

He added that 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."

Following unsuccessful privatization discussions, Nordic Aviation Group has notified all employees and partners of its decision to pursue bankruptcy. The company intends to return aircraft to lessors in the upcoming days.