Barcelona city tours is a perfect opportunity to have a perfect vacation outside the Baltic States. Gene Zolotarev on how to destabilize the EU financial system. Andris Berzins
Vladimir Linderman aka Abel Edmunds Sprudzs Valdis Zatlers Aivars Lembergs Girts Valdis Kristovskis Maris Grinblats Guntars Krasts Alfreds Rubiks Sandra Kalniete Raivis Dzintars Algirdas Butkevicius Algirdas Paleckis Dalia Grybauskaite Kazimira Danute Prunskene Vytautas Landsbergis Rolandas Aksas Viktor Uspaskich Valdemar Tomasevski Leonidas Donskis Arturas Zuokas Edgar Savisaar Andrus Ansip
The current website developed by YWSolution Limited

FlyLAL declares bankruptcy

Jan 23, 2009
TBT Staff

FlyLAL declares bankruptcy
After two failed buyout attempts, the airline was forced to declare bankruptcy (photo courtesy of FlyLAL).
VILNIUS - FlyLAL, the Lithuanian flagship airline, has been forced to declare bankruptcy.

The ailing airline has struggled with debt for months. After the government refused to nationalize the company, it came to an agreement with a Swiss holdings company to buy the airline. That deal also fell through when the company failed to deliver a promised loan.

"Yes it has been very tough - all this week we have been trying to help our customers. We couldn't help them financially, but we have passed on information to other airlines and we have asked them to accept their tickets," FlyLAL CEO Vytautas Kaikaris told The Baltic Times.

KLM will offer a 40 euro discount for FlyLAL customers to Amsterdam, and they will also accept existing FlyLAL tickets.

Kaikaris said that the airline would be shut down, but other parts of the company -- including FlyLAL Techniks and Grounds Services -- would continue with regular operations.

"The other parts of the company will go on and lead a normal business life - they will look for normal paying customers, maybe from Russia, which we were using before and not paying for. For FlyLAL Techniks, it can only be good now," he said.

Kaikaris said SAS will step in to fill the gap in the market, offering flights from Vilnius using Estonian Air.

"SAS are now in a strong bargaining position to get the discounts from Vilnius Airport, which we could never get. Its  like that how the foreign companies get it, but the local ones do not," the FlyLAL CEO said.

In December the shareholders of FlyLAL offered a 51 percent stake in the company to the state for a symbolic price of 1 litas and asked for state guarantees for a 30 million litas (8.7 million euro) loan. However, the Transport Ministry refused to aid the carrier.
 MORE NEWS
  • Ukraine crisis costs 750 milli...
    The cost of the Ukraine crisis amounts to around 750 million U.S. dollars (558 mil...
  • UK warns of Russia military ’t...
    NATO is not prepared to deal with a military threat from Russia and must adjust to...
  • EU imposes fresh sanctions aga...
    European Union leaders agreed Tuesday to impose broad economic sanctions against R...
  • EU officials agree on expandin...
    The EU agreed Monday to impose asset freezes and travel bans on business figure...
  • Russian-Latvian relations ’com...
    Russian-Latvian relations have become more complicated since the conflict in Uk...
  • U.S wanted hacker can’t be ext...
    A Latvian man accused of allegedly hacking into thousands of computers to steal...
  • Riga Apartments for Rent

    Maximus
    © 2014 BALTIC NEWS LTD. All Rights Reserved.