Nordica

History

2025: Declared Bankrupt

On January 28, 2025, the Harju County Court in Estonia declared the national air carrier Nordica bankrupt. As part of this process, hundreds of company employees were laid off.

The Estonian state-owned Nordic Aviation Group (NAG), which includes Nordica and Xfly airlines, initiated bankruptcy proceedings in November 2024. According to the petition filed with the court, the enterprise remains a debt of 38 million euros after deducting the value of assets. As of the end of October 2024, Nordica employed 579 people, including 286 in Estonia.

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Фото: Freepik

It is said that after the declaration of insolvency, the regular activities of the company ceased: payments, disclosures or the adoption of new obligations are strictly limited. In Nordica, temporary managers were appointed, while the court imposed restrictions on all transactions with the company's assets.

Most of the leased aircraft used by NAG were returned to lessor-designated locations. In addition, the liners owned by Transpordi Varahaldus OÜ have been moved to Tallinn Airport, where they will be properly stored and maintained if necessary. At the same time, all contracts for the provision of services related to rented personnel were terminated, which will allow partners to either continue to provide their services to other airlines or file their own bankruptcy applications.

As part of Nordica's bankruptcy, a collective process of dismissal was initiated for employees in accordance with the law. Workers will be able to apply for unemployment insurance benefits, and the interim manager on their behalf will be able to transfer unpaid salaries and other due funds. Former employees will be able to receive benefits provided for by law.^[1]

Notes