Nordica to acquire LOT stake in Xfly, become sole owner
Estonia’s flag-carrier Nordic Aviation Group (Nordica) reached an agreement with LOT Polish Airlines to obtain LOT’s 49% share in Xfly (previously Regional Jet). The deal makes Nordica the sole owner of its regional subsidiary Xfly. Despite the “breaking up”, commercial cooperation between Nordica and LOT would continue.
“All this means that Estonia’s national airline is now the 100% owner of Xfly, which operates as a capacity provider, giving us the freedom to make quick decisions ourselves if we need to – which is vital considering how much the coronavirus crisis has shaken up the aviation market,” Chairman of the Management Board of Nordica Erki Urva said.
“As a result of the pandemic and significantly reduced demand for air connections, today we are completing this special journey,” Rafał Milczarski, the CEO & President of the Management Board of LOT Polish Airlines, said, adding that the four years of mutually beneficial cooperation is over.
In November 2016, Poland’s flag-carrier LOT acquired a 49% of share in Nordica’s subsidiary Xfly, previously called Regional Jet. The two airlines outsourced flight operations services from Xfly, shared a ticket sales platform, and worked together in operating flights between Tallinn and Warsaw.
As Nordica is striving to survive COVID-19 pandemic, the airline received approval for a state-aid package, which included a state-guaranteed loan of $8 million and capital back-up by $22 million in October 2020.
Previously, Urva explained that the package would help the airline pay off accumulated debts.
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