Parliament was given an overview of state-owned airline Nordica

The Riigikogu’s Economic Affairs Committee was given an overview of the financial situation of state-owned airline Nordica on Tuesday. Committee member MP Erki Savisaar said on Wednesday that he was satisfied with what he had heard.

According to Erki Savisaar, the load factor of Estonia’s new state airline’s various routes has been comparable to that of competing airlines at over 70 percent, and so there was no problem in that regard.

The number of delayed and canceled flights, which was cause for concern during the spring, has also decreased, although according to the MP, there was still room for improvement. “At the same time, however, if you compare [today’s situation] to that with where they were in the spring, the situation has greatly improved,” Savisaar told ERR’s online news portal, who found that the primary factor involved in this improvement was Nordica’s switch to its own crews and fleet of planes.

Savisaar said that half of the money granted to the airline by the state had been spent by now, however if the business manages to stay on track and reach current profit by 2019, the company’s being in the red this year will not be a problem.

“What was said was so lovely that I want to believe,” said Savisaar. “They cannot be given any additional money for the next nine years, according to EU rules, so if such losses should continue as at present, then they will not hold out for long.”

Nordica has announced that they will not publish their economic results before the end of their first year of operation, however they are keeping within budget. First-year losses are projected to come in at 15 million euros.

Source: ERR News

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