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===Bankruptcy===
===Bankruptcy===
During 2008, flyLAL-Lithuanian Airlines suffered from price war with [[AirBaltic]]<ref>[http://www.delfi.lt/archive/article.php?id=18781358 Lietuvos atsakas Latvijai: įmonių ginčų politikai nesprendžia]</ref> and slowing of the travel industry due to the [[Financial crisis of 2007–2010|global economic crisis]].<ref>[http://www.delfi.lt/archive/article.php?id=19575350 „FlyLal“ prognozuoja, kad keleivių srautas sumažės trečdaliu]</ref> Despite the crisis, the number of passengers grew by 61% during 2008.<ref>[http://www.delfi.lt/archive/article.php?id=20047764 2008 metais „FlyLal“ keleivių skaičius išaugo 61 proc.]</ref> In December 2008, the company admitted suffering financial difficulties and debts of 86 mln litas (26.1 mln Euros). It offered 51% of its shares to the government for a symbolic sum of 1 litas in exchange for state guarantee of its debt. The government declined the offer.<ref>[http://www.baltictimes.com/news/articles/22029/ Lithuania refuses nationalization offer], BalticTimes</ref>
During 2008, FlyLAL-Lithuanian Airlines suffered from a price war with [[AirBaltic]]<ref>[http://www.delfi.lt/archive/article.php?id=18781358 Lietuvos atsakas Latvijai: įmonių ginčų politikai nesprendžia]</ref> and slowing of the travel industry due to the [[Financial crisis of 2007–2010|global economic crisis]].<ref>[http://www.delfi.lt/archive/article.php?id=19575350 „FlyLal“ prognozuoja, kad keleivių srautas sumažės trečdaliu]</ref> Despite the crisis, the number of passengers grew by 61% during 2008.<ref>[http://www.delfi.lt/archive/article.php?id=20047764 2008 metais „FlyLal“ keleivių skaičius išaugo 61 proc.]</ref> In December 2008, the company admitted suffering financial difficulties and debts of 86 mln litas (26.1 mln Euros). It offered 51% of its shares to the government for a symbolic sum of 1 litas in exchange for state guarantee of its debt. The government declined the offer.<ref>[http://www.baltictimes.com/news/articles/22029/ Lithuania refuses nationalization offer], BalticTimes</ref>


Shortly afterwards it was announced that 100% of the FlyLal shares would be sold to SCH Swiss Capital Holdings, an unknown company registered in December 2008.<ref>[http://www.delfi.lt/archive/article.php?id=20078406 Klausimų dėl „FlyLal" pirkėjo kyla ne tik Lietuvoje, bet ir Šveicarijoje]</ref> The company was sold for $1 mln effective 23 January 2009.<ref name=deal>[http://www.delfi.lt/archive/article.php?id=19996139 „FlyLal" turi naujus šeimininkus]</ref> The new owners agreed to advance 1 mln Euros to cover some of the debts and prevent the cancellation of FlyLal's operating licence.<ref name=deal/> When the advance was not received, the deal was terminated and FlyLal announced termination of its activities effective 17 January 2009. Another proposal for government bailout was rejected on January 23.<ref>[http://www.delfi.lt/archive/article.php?id=20244787 Valstybė atsisakė keisti „FlyLal" skolas į akcijas]</ref> The bankruptcy significantly reduced the number of direct flights from Vilnius: from 28 to 14 destinations. The number of passengers in Vilnius Airport decreased by 43%.<ref>[http://www.delfi.lt/archive/article.php?id=24136279 Civilinės aviacijos kryžkelė]</ref>
Shortly afterwards it was announced that 100% of the FlyLal shares would be sold to SCH Swiss Capital Holdings, an unknown company registered in December 2008.<ref>[http://www.delfi.lt/archive/article.php?id=20078406 Klausimų dėl „FlyLal" pirkėjo kyla ne tik Lietuvoje, bet ir Šveicarijoje]</ref> The company was sold for $1 mln effective 23 January 2009.<ref name=deal>[http://www.delfi.lt/archive/article.php?id=19996139 „FlyLal" turi naujus šeimininkus]</ref> The new owners agreed to advance 1 mln Euros to cover some of the debts and prevent the cancellation of FlyLal's operating licence.<ref name=deal/> When the advance was not received, the deal was terminated and FlyLal announced termination of its activities effective 17 January 2009. Another proposal for government bailout was rejected on January 23.<ref>[http://www.delfi.lt/archive/article.php?id=20244787 Valstybė atsisakė keisti „FlyLal" skolas į akcijas]</ref> The bankruptcy significantly reduced the number of direct flights from Vilnius: from 28 to 14 destinations. The number of passengers in Vilnius Airport decreased by 43%.<ref>[http://www.delfi.lt/archive/article.php?id=24136279 Civilinės aviacijos kryžkelė]</ref>

Revision as of 18:11, 25 February 2017

flyLAL-Lithuanian Airlines (Lithuanian Airlines, Lietuvos avialinijos)
IATA ICAO Call sign
TE LIL LITHUANIAN
Founded1991
Ceased operations17 January 2009
Operating basesVilnius International Airport
Focus citiesPalanga International Airport
Frequent-flyer programGintarinės mylios (Amber Miles)
Fleet size13
Destinations13
HeadquartersVilnius, Lithuania
Key peopleVytautas Kaikaris, CEO
WebsiteflyLAL.com
Boeing 737-500 from Lithuanian Airlines in Frankfurt, July 2005.

flyLAL-Lithuanian Airlines (also known as Lithuanian Airlines and LAL) was the national airline of Lithuania, based in Vilnius.[1] It operated domestic and international scheduled services. Its main base was Vilnius International Airport.[2]

Due to financial difficulties, flyLAL-Lithuanian Airlines suspended operations on 17 January 2009.[3][4] FlyLal's sister airline, FlyLal Charters, continues to operate normally under a separate license, although in July 2010, FlyLal Charters was rebranded as Small Planet Airlines.

History

Establishment and privatization

The airline was established as government-owned Lietuvos avialinijos (Lithuanian Airlines) on 20 September 1991, shortly after Lithuania's independence from the Soviet Union. It was organized on the basis of the Aeroflot fleet located in Vilnius (twelve Yokovlev Yak-42, seven Tupolev Tu-134, four Antonov An-24, and three Antonov An-26 airliners).[5] During the period from 1991 to 1993, the airline reoriented its route network from the countries of the former Soviet Union to Western Europe. From the beginning, the airline faced stiff competition with Lufthansa and Scandinavian Airlines.[5]

In December 1991, Lithuanian Airlines sub-leased its first Boeing 737-200 from Malév Hungarian Airlines. Six months later, the aircraft was leased directly from Guinness Peat Aviation and bore the registration LY–GPA.[6]

After a decade of loss-making operations, abortive plans to launch a trans-Atlantic service, and the widely criticized sale of landing slots at London Heathrow to cover some US$20 million in debt, Lithuanian Airlines was privatized in 2005.[7] The airline was acquired by LAL Investicijų Valdymas (LAL Investment Management), a wholly-owned subsidiary of the FlyLal Group, for 27 million Lithuanian litas.[8] The airline was subsequently renamed FlyLal–Lithuanian Airlines. In February 2007, FlyLal was recognized as most punctual airline at Gatwick Airport in London.[7] It had 542 employees as of March 2007.[2] As of December 2007, the airline had three Boeing 737-300, five Boeing 737-500, and four SAAB 2000 airliners and had plans for further expansion.[9] During 2007, the number of passengers grew by 14% to 526,000.[10] In 2008, charter flight services were transferred to sister company FlyLal Charters, leaving only scheduled flights for FlyLal.

Bankruptcy

During 2008, FlyLAL-Lithuanian Airlines suffered from a price war with AirBaltic[11] and slowing of the travel industry due to the global economic crisis.[12] Despite the crisis, the number of passengers grew by 61% during 2008.[13] In December 2008, the company admitted suffering financial difficulties and debts of 86 mln litas (26.1 mln Euros). It offered 51% of its shares to the government for a symbolic sum of 1 litas in exchange for state guarantee of its debt. The government declined the offer.[14]

Shortly afterwards it was announced that 100% of the FlyLal shares would be sold to SCH Swiss Capital Holdings, an unknown company registered in December 2008.[15] The company was sold for $1 mln effective 23 January 2009.[16] The new owners agreed to advance 1 mln Euros to cover some of the debts and prevent the cancellation of FlyLal's operating licence.[16] When the advance was not received, the deal was terminated and FlyLal announced termination of its activities effective 17 January 2009. Another proposal for government bailout was rejected on January 23.[17] The bankruptcy significantly reduced the number of direct flights from Vilnius: from 28 to 14 destinations. The number of passengers in Vilnius Airport decreased by 43%.[18]

Former destinations

FlyLAL Boeing 737-500

See also

References

  1. ^ "Contacts." FlyLal. 11 May 2006. Retrieved on 25 October 2009.
  2. ^ a b Flight International 3 April 2007
  3. ^ http://www.flyLAL.com/repository/download/2009_01_16_flyLAL_stabdo_veikla.pdf
  4. ^ http://www.flyLAL.com/flyLAL_ceases_operations.pdf
  5. ^ a b Baltic Uprising. 16–22 June 1993. Flight International.
  6. ^ Boeing 737-100 and 200 by Robbie Shaw, Michael Sharpe
  7. ^ a b Lithuania's main airline wants its luck to change, so that it can realise its bold ambitions. March 4, 2008. The Economist Intelligence Unit.
  8. ^ Template:Lt icon „FlyLal" 51 proc. savo akcijų valstybei siūlo už 1 Lt
  9. ^ Template:Lt icon „flyLAL“ lėktuvų parką papildė ketvirtas „Boeing 737-300“
  10. ^ „flyLAL“ skraidino 14 proc. daugiau keleivių
  11. ^ Lietuvos atsakas Latvijai: įmonių ginčų politikai nesprendžia
  12. ^ „FlyLal“ prognozuoja, kad keleivių srautas sumažės trečdaliu
  13. ^ 2008 metais „FlyLal“ keleivių skaičius išaugo 61 proc.
  14. ^ Lithuania refuses nationalization offer, BalticTimes
  15. ^ Klausimų dėl „FlyLal" pirkėjo kyla ne tik Lietuvoje, bet ir Šveicarijoje
  16. ^ a b „FlyLal" turi naujus šeimininkus
  17. ^ Valstybė atsisakė keisti „FlyLal" skolas į akcijas
  18. ^ Civilinės aviacijos kryžkelė

Media related to FlyLAL at Wikimedia Commons

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