AS Nordic Aviation Group may be sold in whole or in part. At the moment the government has decided to leave the cards open in this matter. According to Sander Salmu, vice-chancellor of the Ministry of Climate, buyers have shown interest in both options. “Those interested had different views,” he observes.
Today the search for a business partner is completed in the sales process. The sales process will continue in more detail at the end of this year or at the beginning of the new year. According to Salmu, contacts with interested parties have been established in recent months, general discussions have taken place, the data room has been prepared and the data will be delivered in the near future. According to Salmu, it is still too early to say when the final sale will take place.
Help was hired and a special inspection was arranged
In early August, Nordic Aviation Group AS announced that the company’s conditions have drastically worsened and that expenses significantly exceed revenue. At the same time, Climate Minister Kristen Michal announced that a special audit will be carried out at the company. The final report of the extraordinary inspection will be completed by the end of February and will reflect the implementation of the industrial plan presented when requesting state aid (Nordica received 22 million euros from the state in 2020 and also the possibility of obtaining a loan a further eight million euros from Kredex) and the impact of the management decisions of the board of directors and the board on the company’s fortunes from 2020.
At the beginning of November AS Nordic Aviation Group announced that the consolidated net loss for the nine months amounted to 11.9 million euros. While in the same period of 2022 the net profit was 1.8 million. The company announced that it is seeking to restore profitability with a strategic business model analysis and that the international aviation consultancy team Knighthood Global Ltd had been hired to advise the company, but even then the consensus was that the airline would be sold.
According to Salmu, the contract with Knighthood Global will not be renewed. According to the Chancellor, the consultancy firm Nordica has become the chairman of the board of directors and a support team. To improve Nordica’s status, there is a continuous process: reorganization of the company, process improvement and stabilization.
According to Michal, the company expected that taxpayers’ money would be used to resolve the crisis, but the government does not support this idea.
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2023-12-19 19:04:39
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