The government confirmed on Thursday to support Nordica’s share capital by €22 million and provide a loan of €8 million to the struggling airline.
Minister of Economic Affairs Taavi Aas (Center) received authorization from the government to vote for increasing the share capital of the company as the minister responsible for involvement in Nordic Aviation Group.
In addition, the government decided that Aas can formalize the state aid package to Nordica once discussions about acquiringPolish airline LOT’s stakein Regional Jet OÜ, a subsidiary of Nordica, have concluded.
The government received permission from the European Commission to support Nordica to the amount of €30 million in August. The purpose of the state aid is to help cope with the difficulties caused by the coronavirus.
“As a result of the discussion in the Cabinet today, the specifications will be clarified and I very much hope that an additional session of the government will take place this week, where the allocation of funds will be decided,” Aas said at a press conference on Thursday.
The economic affairs minister continued: “Nordica has found a niche and is offering strong competition with its presence. With this support, they can recover better and stronger.”
Read more: ERR.EE