Lithuanian airline flyLAL has started the procedure of bankruptcy

The largest Lithuanian air carrier, flyLAL airline, announced about the termination of flights and the stop of the functioning. According to the press-service of the Ministry of communications, the last resort was due to the withdrawal of the license for transportation. 

Extreme measure to revoke of the license of flyLAL airline was undertaken by the Association of Civil Aviation of  Lithuania for the reason of insufficient creditworthiness of the carrier that jeopardizes the safety of the flights. Currently, the airline debts are more than 26 million euros. 

The situation seemed to have reached its peak when on 19 December the flyLAL airline offered the Government of Lithuania to repurchase the shares for a symbolic fee of 1 lit, but this «generous» proposal was rejected. Later, in an attempt to avoid a crash, the airline entered into an agreement with Swiss Investment Fund SCH Swiss Capital Holding AG. Nevertheless, the Swiss have not fulfilled their financial obligations, and the procedure for termination of the contract had begun. 

On January 16, 2009 flyLAL airline made its last flight to Amsterdam and officially declared an end of their functioning. At this moment Vilnius Court entertained a declaration of the airline bankruptcy acceptance. After the termination of the airline functioning, about 400 employees became unemployed. Also, in сonnection with the liquidation of the airline, about 30 000 passengers, who had previously acquired tickets, had to change their plans. Nevertheless, flyLAL apologizes and guarantees the customers a refund for the failed flights. 

The elimination of the airline promises to have an extremely negative impact not only on the affected passengers but also on staff. Materialized, in сonnection with the termination of the carrier, inaccessibility of Vilnius can significantly decrease the influx of tourists in one of the most beautiful cities in Europe and jeopardize the celebration in honor of the European Cultural Capital 2009.