Nordica case closed: No charges filed in criminal probe of Estonian airline
Estonian prosecutors closed their investigation into state-owned airline Nordica with no charges filed, finding no criminal wrongdoing.
In 2023, the Ministry of Climate asked Nordic Aviation Group AS — Nordica's parent company — to conduct a special audit to identify the causes of the airline's financial difficulties.
The audit flagged potential issues in the actions of the management and supervisory boards of Nordica and its subsidiary Regional Jet, prompting prosecutors to open a criminal case last February under the Penal Code section on abuse of trust.
District Prosecutor Daniel Toom from the District Prosecutor's Office for Economic Crime and Corruption said the review "showed that the company's losses arose primarily from business risks that the company had undertaken and that had materialized."
He added that they found no abuse of trust or other violation that would qualify as a punishable crime.
The investigation found that management informed the supervisory board of major contracts and some associated risks but did not always provide enough detail for fully informed decisions. This sometimes left the board unable to properly approve projects or transactions.
When additional analyses were requested, the audit suggested these were not always discussed afterward.
Interviews also indicated that the supervisory board generally did not question the necessity of projects proposed by management or other information presented.
The audit confirmed that projects were coordinated with the board and necessary approvals were obtained, and found no evidence that management or board members knowingly made harmful decisions.
"Management or supervisory board members taking such business risks does not automatically constitute a violation of statutory or contractual obligations," Toom said, noting that taking a business risk is not punishable under criminal law merely because the economic risk materializes.
He added, however, that prosecutors cannot assess whether potential breaches identified in the audit could lead to civil liability for board members.
The criminal investigation, covering the years 2020–2023, was led by the District Prosecutor's Office for Economic and Corruption Crimes and conducted by the Central Criminal Police.
In January, Harju District Court declared Nordica bankrupt, after the company's management had filed for bankruptcy in November 2024.
Nordic Aviation Group was founded in 2015, before the bankruptcy of the previous state airline, Estonian Air. Nordica flew out of Tallinn under its own name until 2019, and later began offering subcontracting services to other airlines.
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Editor: Huko Aaspõllu, Aili Vahtla
