RusBankrot
We know everything about bankruptcy
26/11/2024
Tuesday
THIS DAY IN HISTORY:
26 November 
1970 Vorkuta received the status of a city.
1970 Tram traffic was opened in Novosibirsk.
1970 Seoul became the capital of Korea.
26 November
1970 Vorkuta received the status of a city.
1970 Tram traffic was opened in Novosibirsk.
1970 Seoul became the capital of Korea.
THE ESTONIAN AIRLINE IS PREPARING FOR BANKRUPTCY
The Estonian state-owned company Nordic Aviation Group (NAG) has announced plans to file for insolvency and cease operations. This decision is due to the inability to attract an investor, which has become critical for a company that has already faced financial difficulties. NAG manages the activities of Nordica and Xfly airlines.
As you know, the Estonian authorities had previously decided on the need to transfer NAG to private ownership. The Government stressed that the organization is no longer of strategic importance to the state, as it actually provides services exclusively on outsourcing. But negotiations with potential buyers ended in failure.
In October, the organization failed to renegotiate a key deal with the Swedish carrier. This has dealt a serious blow to its financial stability. An attempt to sell Nordica to Danish investor Lars Toussaint, the owner of Jettime, was also unsuccessful: he refused the deal due to high risks.
NAG management announced that the transfer of aircraft to their owners will begin in the coming days. All procedures related to insolvency will be performed at the same time. Employees and partners will receive notifications. The Estonian structure dealing with the problem of unemployed employees will be informed about the bankruptcy.
NAG appeared in 2015. This happened after the leading carrier, Estonian Air, was declared bankrupt. Initially, the company's mission assumed that it would establish air links with the Estonian capital and develop market competition.
In 2019, the company stopped operating flights. The main activity was focused on the provision of services for the rental of airliners and their maintenance. The company was engaged in hiring and working with aircraft crews. But this model has proved to be insufficiently stable, especially in the face of growing competition from international players.
NAG's financial results reflect its crisis situation. In the first six months, the company suffered losses of ˆ8.2 million. According to this indicator, losses in 2024 exceeded the data of the same period in 2023 by 7.9%. At the same time, the decrease in revenues amounted to ˆ33.2 million. This is 21.3% less than last year's results.
The bankruptcy of NAG calls into question the future of the Estonian aviation industry. Despite efforts to maintain operations, the company has not been able to adapt to the changed market conditions. The decision to terminate the work of Nordica and Xfly becomes a symbol of the completion of an entire chapter in the history of Estonian aviation.
As you know, the Estonian authorities had previously decided on the need to transfer NAG to private ownership. The Government stressed that the organization is no longer of strategic importance to the state, as it actually provides services exclusively on outsourcing. But negotiations with potential buyers ended in failure.
In October, the organization failed to renegotiate a key deal with the Swedish carrier. This has dealt a serious blow to its financial stability. An attempt to sell Nordica to Danish investor Lars Toussaint, the owner of Jettime, was also unsuccessful: he refused the deal due to high risks.
NAG management announced that the transfer of aircraft to their owners will begin in the coming days. All procedures related to insolvency will be performed at the same time. Employees and partners will receive notifications. The Estonian structure dealing with the problem of unemployed employees will be informed about the bankruptcy.
NAG appeared in 2015. This happened after the leading carrier, Estonian Air, was declared bankrupt. Initially, the company's mission assumed that it would establish air links with the Estonian capital and develop market competition.
In 2019, the company stopped operating flights. The main activity was focused on the provision of services for the rental of airliners and their maintenance. The company was engaged in hiring and working with aircraft crews. But this model has proved to be insufficiently stable, especially in the face of growing competition from international players.
NAG's financial results reflect its crisis situation. In the first six months, the company suffered losses of ˆ8.2 million. According to this indicator, losses in 2024 exceeded the data of the same period in 2023 by 7.9%. At the same time, the decrease in revenues amounted to ˆ33.2 million. This is 21.3% less than last year's results.
The bankruptcy of NAG calls into question the future of the Estonian aviation industry. Despite efforts to maintain operations, the company has not been able to adapt to the changed market conditions. The decision to terminate the work of Nordica and Xfly becomes a symbol of the completion of an entire chapter in the history of Estonian aviation.
25.11.2024
