Finnair Sells Part Of Nordic Regional Stake

Danish Air Transport has bought a 60 percent stake in regional carrier Nordic Regional Airlines from Finnair.

Terms of the deal were not divulged but Finnair said it will have no impact on the airline’s current operations and personnel.

Nordic Regional, also known as Norra, operates Finnair’s domestic and European routes with a fleet of 24 ATR and Embraer aircraft.

“Finnair’s and Norra’s partnership model in domestic and regional purchase traffic has served us well, and the Danish Air Transport will strengthen the partnership even more,” Finnair chief operating officer Jaakko Schildt said. “They have solid experience in operating regional traffic with an ATR fleet.”

Danish Air Transport director Jesper Rungholm outlined the opportunities of a strategic partnership, with plans to strengthen the airline’s technical and operational knowledge.

“With our knowledge on scheduled and charter flights, together with Norra's knowhow, we can develop the business together. And with new options on the Embraer 190 aircraft, that fits into our niche charter production,” Rungholm said.

Nordic Regional was launched as Flybe Nordic in 2011 after Flybe and Finnair acquired Finncomm Airlines. Flybe owned 60 percent of the company, Finnair the remaining 40 percent.

Finnair assumed full ownership of the airline when Flybe sold out in 2017 after fighting mounting losses in the Scandinavian market. Despite paying a reported EUR€12 million (USD$14 million) for its share of the Finncomm purchase and further investing in the new airline, Flybe sold out for a nominal €1.

Danish Air Transport is a scheduled and charter airline, operating a fleet of 14 aircraft on Danish domestic routes and passenger and cargo charters.

The transaction is subject to the approval of the Finnish Competition and Consumer Authority.