Star1 was forced to declare bankruptcy as debts built up following the arrest of its only plane in Dublin late last month.
VILNIUS -- Lithuania's Star1 Airlines has officially declared bankruptcy, one week after it's only plane was detained in Dublin amid piling financial debt.
The airline was swamped with demands from creditors shortly after the announcement that its plane was being held, forcing the company to turn to the government with a bankruptcy claim.
"JSC Star Team Group, as the only shareholder of Star1 Airlines, assigned the director of the company to prepare and submit the application for initiation of bankruptcy and other relevant documents to Vilnius District Court no later than October 5, 2010," the company said in a press release.
"Management of the company deeply regrets about inconveniences caused to its passengers and partners," the press release said.
The company's demise is the latest in a long string of problems facing the Lithuanian aviation industry, problems that began almost two years ago with the collapse of the national air carrier.
The company urged ticket holders to send their applications for remuneration to [email protected].