State-owned airline Nordica could face privatization

 

State-owned airline Nordica could face privatization

Troubled state-owned airline Nordica may have to be privatized in the years to come, due to European Commission rules requiring the repayment of state aid.


Management board chair Erki Urva says that European Commission rules require state aid, which amount in the case of Nordica to €30 million and was issued after the peak of the coronavirus pandemic led to practically all flights being grounded, must be paid back within seven years.


The alternative is to privatize the airline.


European Commission ruling means state aid comes with strings attached


The European Commission approved state aid for Nordica in August, with the conditions including a freeze on board members’ pay and a bar on aggressive expansion into other routes etc.


In addition, this money must be paid back, or the airline privatized.


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