Estonia: CEO resigns, minister orders audit after Nordica reports loss

Estonia’s state-owned airline, Nordic Aviation Group (Nordica), generated a consolidated turnover of EUR 54.9mn in the first half of 2023, ERR reports. The group suffered a net loss of EUR 7.2mn. David O’Brock, chairman of Nordica’s supervisory board, noted that the situation in the aviation market was complicated, with late deliveries of leased aircraft, short supply of staff and equipment, longer maintenance times, and more expensive input prices. Climate Minister Kristen Michal ordered Nordica’s supervisory board to carry out a special audit. Nordica has hired consulting firm Knighthood Global to assess the company’s operations. Meanwhile, Nordica’s CEO, Jan Palmer, has resigned. Knighthood Global’s board chairman, Remco Althuis, was appointed interim CEO. Michal insisted that the government would not provide more state support to Nordica. He said that the company would have to sort out its current difficult situation for privatisation to go ahead.

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