CEO: Nordica’s loss should remain under €20 million

State-owned airline Nordica made a loss of €3.8 million in 2019. The company’s 2020 loss will amount to roughly €20 million, CEO Erki Urva said.

The airline’s 2019 loss was one of the reasons Nordica stopped flying out of Tallinn last fall, while the coronavirus this year will see that loss balloon. The airline’s summer state aid application forecasts it at €23 million, “Aktuaalne kaamera” reported on Friday.

“The loss will not be that great, but it will definitely be bigger than last year. It is hardly any wonder as we went from having 24 aircraft in the air to having none or just a singe one. /…/ But it should not exceed €20 million,” Nordica CEO Erki Urva said.

State aid in the volume of €30 million will be used to cover Nordica’s 2020 loss.

To qualify for state aid, Nordica had to end Polish airline LOT’s 49 percent stake in subsidiary Regional Jet.

“We have an agreement in place to terminate it in late November. Text of contracts has been agreed on,” Urva said.

Read more: ERR.EE

Be First to Comment

Leave a Reply

Your email address will not be published. Required fields are marked *