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Estonia's Nordica get permission to hand over holding in subsidiary to LOT

BC, Tallinn, 28.01.2017.Print version
Nordic Aviation Group, the Estonian state owned airline operating under the Nordica brand, has received permission from the Competition Authority to hand over 49 percent of the shares in the operator of aircraft and air operator's certificates Regional Jet to its strategic partner LOT, reports LETA/BNS.

The parties filed a notice of consolidation on Dec. 30. According to the notice, Nordic Aviation Group and the Polish carrier Polskie Linie Lotnicze LOT S.A. wish to jointly acquire control over the Estonian company Regional Jet OU. Regional Jet is a fully owned subsidiary of Nordic Aviation Group.

The transaction will not have an impact on the holding structures of Nordic Aviation or LOT and both will remain independent companies after that.

Nordica announced at the beginning of November that its year-long cooperation with Slovenian Adria Airways was coming to an end and it was about to enter into a strategic partnership with LOT Polish Airlines, using the latter's commercial platform, ticketing system and airline code.

The carrier said at the time that it plans to increase the fleet of its subsidiary Regional Jet by three planes during 2017 and eventually to 20-25 planes by 2020 in cooperation with the new partner. As part of their strategic cooperation LOT will acquire 49% of the shares in Regional Jet.

The Polish state owned carrier LOT operates on the average 200 flights to 60 destinations on four continents daily, carrying about five million passengers a year.

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