EUROPE & CIS: FlyLAL ceases operations

FlyLAL Lithuanian Airlines ceased operations recently after its acquisition by SCH Swiss Capital Holdings for €1 million plus an agreement to cover debt of an additional €1 million, fell through. FlyLAL said that SCH “did not fulfill its obligations under the agreement” and that it “cannot secure the continuity of its operations and satisfy the […]


FlyLAL Lithuanian Airlines ceased operations recently after its acquisition by SCH Swiss Capital Holdings for €1 million plus an agreement to cover debt of an additional €1 million, fell through.

FlyLAL said that SCH “did not fulfill its obligations under the agreement” and that it “cannot secure the continuity of its operations and satisfy the demands of its creditors.” SCH did not transfer the funds in time, flyLAL CEO Vytautas Kaikaris said, adding that shutting down was “the only possible course.”

FlyLAL was privatised in 2005 and was held by several Lithuanian investors. It lost LTL8.1 million (US$3.2 million) in 2007 and last month was rebuff ed in its attempt to sell a 51 per cent stake back to the government for a “symbolic” LTL1. At that point it announced the suspension of service to Istanbul Ataturk, Rome Fiumicino and Paris Charles de Gaulle and a reduction of flights to Frankfurt and Milan. The carrier operates four 737-500s and three Saab 2000s.