Lithuanian Airlines ceases operations

Baltic carrier Lithuanian Airlines, also called flyLAL, has grounded its fleet after a buy-out deal for the financially-troubled company fell through.

According to airline bosses, the collapse was caused by “unfair market conditions, record high oil prices and low demand” for flights during the winter season.

Many passengers have been left stranded by the failure, and are seeking either transport on alternate carriers or reimbursement of their airfares. Approximately 30,000 customers having advance bookings on the airline will be affected.

The airline intends to file for bankruptcy as there are no other offers in the works. More than 460 staff will be affected by the collapse as well.

It had been expected that SCH Swiss Capital Holdings, an investment firm, would inject as much as $1 million to pay off the carrier’s debts and avoid bankruptcy proceedings.

Chief executive of Lithuanian Airlines, Vytautas Kaikaris, commented: “We sincerely regret that the current situation has led to the painful decision and no other decision was found. We decided that ceasing operations of flyLAL is the only possible decision in the current circumstances.”

The final flight on flyLAL was the service from Amsterdam to Vilnius on Friday, 16 January.

Thanks to www.travelmole.com for the above quotes, for more information on this article please visit their website.

www.flylal.com