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Airline Management, Airline Mergers & Acquisitions, Airline Restructuring, Regional Aircraft, Regional Airlines, UPDATES

The Chairman of Estonia’s Nordica resigns. Remember this was the airline that took over Estonian Air routes the very day Eastonian Air shut down (November 8, 2015) as per European Commission orders to give back to the Estonian people the Euro 85 million in illegal aid that was used to keep the struggling national airline alive as it distorted competition. With no money to give back, Estonian Air had to shut down, just like Hungary’s Malev (February 3, 2012) and Cyprus Airways (January 9, 2015) for using illegal state aid. The Estonians learned from the Malev and Cyprus Airways EC ruling on how to circumvent EC rulings, and Nordica (Nordic Aviation Group) was readied and waiting in the wings for 2 months before the EC Ruling with Euro 72.7 million in new Estonian state aid for a “new” state airline. Now it has 18 aircraft (6 x ATR-72-600, 2 x CRJ700 and 10 x CRJ900) and is 49% owned by LOT. Has Nordica and Estonia circumvented EC rules? did they find a way to beat the EC and just let the old national airline collapse and start a new one with no repercussion? You know, all EU states should get out of the airline ownership business, airlines today need to swim or sink and state aid distorts competition, especially with private airlines who need make a return for their shareholders. Time for the EU states to get out of the airline business finally! No more public money for EU airlines, that is what the EC should be aiming for now.

Read my regular Articles and Posts on LinkednIN:  https://www.linkedin.com/in/tomas-chlumecky-3200a021/

 

Chairman of the Management Board of Estonian airline Nordica submitted his resignation

 

July 14, 2018 –  The Nordic Times

 

 

Jaan Tamm, Chairman of the Management Board of Estonian airline Nordica, submitted his resignation to the Supervisory Board of Nordic Aviation Group AS today, which was duly accepted.

 

Tamm has headed up the Management Board at Nordica since the company’s establishment in October 2015. In less than three years the airline has become one of the most competitive in its region, operating a fleet of 18 aircraft and employing almost 450 aviation specialists in Estonia and other countries in Europe.

 

 

 

 

 

 

During that time 21 direct routes have been launched from Tallinn Airport, making Nordica far and away the biggest carrier operating out of the Estonian capital. The airline also provides flight operation services to foreign partners as an additional revenue stream. A total of 613,000 passengers flew with Nordica in 2017, although when contracted flights are taken into account that figure rises to more than a million. The company ended the financial year with a profit of almost 900,000 euros – a much better result than anyone had expected.

 

Tamm says that Stage 1 of the airline’s development is now complete. “The state charged us with the task of getting the airline off the ground, offering direct flights from Tallinn to destinations that are important to people in Estonia and laying the ground work for the sustainability of the company,” he explained. “To my mind we’ve achieved all of that, as well as the majority of the tasks we set ourselves in the business plan when we set up the company.

Three incredibly intense years are behind us and I’d like to thank the entire Nordica team – our pilots, our cabin crew and our office staff – for their collective efforts and achievements. Having said all that, I also feel it’s the right time for the company to be setting itself new goals under a new manager.”

 

 

Peeter Tohver, the Chairman of the Supervisory Board of Nordic Aviation Group AS, says he places enormous value on the work Tamm has done. “Launching any business is difficult, but Jaan and his team have managed to establish a viable and competitive airline and meet all of the goals they set themselves,” he said. “At the same time, I understand and accept the decision he’s made.”

 

Tohver announced that Tamm’s duties would be taken on by current Supervisory Board member Hannes Saarpuu. “Hannes will be taking up the post temporarily until we’ve found a new Chairman of the Management Board via an open competition,” he explained.

 

The Supervisory Board of Nordic Aviation Group AS will continue with three members and the other member of the Management Board, Ahto Pärl, as the company’s Head of Finance.

 

Hannes Saarpuu proved his ability to manage a service industry company as the director of Lux Ekspress, a position he held for many years. He also has professional experience in the field of aviation.

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I am a Canadian and EU national with an MBA and 33+ years experience in aviation business development with 20 years overseas and work in 30+ countries. A former investment/merchant banker (mergers and acquisitions to corporate turnarounds). airline and OEM senior executive and past owner of 6 successful aviation companies in 3 countries (executive jet charter/management companies, aircraft sales, aircraft broker, airline/aerospace consulting to aircraft insurance). I have a very diverse aviation background with 75+ aviation companies (50+ airlines of all sizes, OEM's, airports, lessors, MRO to service providers) as consultant, executive management, business analyst and business development adviser. Excellent success track record in International Business Development. Most work with airlines is with new start-ups and restructuring of troubled carriers. I sold new business jets, turboprops and helicopters for Cessna, Raytheon, Gulfstream to Eurocopter as an ASR as well as undertaking sales and marketing of commercial aircraft for Boeing, de Havilland, Dornier, Saab and Beechcraft. Brokered everything from LET-410's to B747's and from piston PA31 to G550 business jets. I look beyond the headlines of the aviation news and analyze what the meaning and consequences of the new information really means. There is a story behind each headline that few go beyond. Picked the name Aviation Doctor, as much of my work has been with troubled companies or those that want and need to grow profitably. I fix problems in the business for a better tomorrow. You can reach me with comments or suggestions at: Tomas.Aviation@gmail.com I write a lot of Articles and Posts on LinkedIN: https://www.linkedin.com/in/tomas-chlumecky-3200a021/

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