flyLAL (also known as Lithuanian Airlines and LAL) was the national

airline An airline is a company that provides air transport services for traveling passengers and freight. Airlines use aircraft to supply these services and may form partnerships or alliances with other airlines for codeshare agreements, in wh ...

of Lithuania, based in

Vilnius Vilnius ( , ; see also other names) is the capital and largest city of Lithuania, with a population of 592,389 (according to the state register) or 625,107 (according to the municipality of Vilnius). The population of Vilnius's functional urb ...

. It operated domestic and international scheduled services from its main base at

Vilnius International Airport Vilnius Airport ( lt, Vilniaus oro uostas) is the international airport of Vilnius, the capital of Lithuania. It is located south of the city. It is the largest of the three commercial airports in Lithuania by passenger traffic. With one runw ...

Flight International ''Flight International'' is a monthly magazine focused on aerospace. Published in the United Kingdom and founded in 1909 as "A Journal devoted to the Interests, Practice, and Progress of Aerial Locomotion and Transport", it is the world's old ...

3 April 2007 Due to financial difficulties the airline suspended operations on 17 January 2009.

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 The Soviet Union,. officially the Union of Soviet Socialist Republics. (USSR),. was a List of former transcontinental countries#Since 1700, transcontinental country that spanned much of Eurasia from 1922 to 1991. A flagship communist state, ...

. Initially, it operated using aircraft of the Aeroflot fleet located in

(twelve

Yakovlev Yak-42 The Yakovlev Yak-42 (russian: Яковлев Як-42; NATO reporting name: "Clobber") is a 100/120-seat three-engined mid-range passenger jet developed in the mid 1970s to replace the technically obsolete Tupolev Tu-134. It was the first airlin ...

, seven

Tupolev Tu-134 The Tupolev Tu-134 (NATO reporting name: Crusty) is a twin-engined, narrow-body jet airliner built in the Soviet Union for short and medium-haul routes from 1966 to 1989. The original version featured a glazed-nose design and, like certain ot ...

, four

Antonov An-24 The Antonov An-24 (Russian/Ukrainian: Антонов Ан-24) ( NATO reporting name: Coke) is a 44-seat twin turboprop transport/passenger aircraft designed in 1957 in the Soviet Union by the Antonov Design Bureau and manufactured by Kyiv, Ir ...

, and three

Antonov An-26 The Antonov An-26 ( NATO reporting name: Curl) is a twin-engined turboprop civilian and military transport aircraft, designed and produced in the Soviet Union from 1969 to 1986.Gordon, Yefim. Komissarov, Dmitry & Sergey. "Antonov's Turboprop Tw ...

airliners). During the period from 1991 to 1993, the airline re-oriented its route network from the countries of the former Soviet Union to

Western Europe Western Europe is the western region of Europe. The region's countries and territories vary depending on context. The concept of "the West" appeared in Europe in juxtaposition to "the East" and originally applied to the ancient Mediterranean ...

. From the beginning, the airline faced stiff competition with Lufthansa and Scandinavian Airlines. In December 1991 Lithuanian Airlines sub-leased its first

Boeing 737-200 The Boeing 737 is a narrow-body aircraft produced by Boeing at its Renton Factory in Washington. Developed to supplement the Boeing 727 on short and thin routes, the twinjet retains the 707 fuselage width and six abreast seating with two u ...

from Malév Hungarian Airlines. Six months later, the aircraft was leased directly from

Guinness Peat Aviation Guinness Peat Aviation (GPA) was a Commercial Aircraft Sales and Leasing company set up in 1975 by Aer Lingus, the Guinness Peat Group (a London-based financial services company) and Tony Ryan, then an Aer Lingus executive. History GPA was ...

and bore the registration LY-GPA. After a decade of loss-making operations, abortive plans to launch a trans-Atlantic service, and the widely criticized sale of

landing slot __NOTOC__ A landing slot, takeoff slot, or airport slot is a permission granted by the owner of an airport designated as Level 3 (Coordinated Airport), which allows the grantee to schedule a landing or departure at that airport during a specific t ...

s at

London Heathrow Heathrow Airport (), called ''London Airport'' until 1966 and now known as London Heathrow , is a major international airport in London, England. It is the largest of the six international airports in the London airport system (the others bei ...

to cover some US$20 million in debt, Lithuanian Airlines was

privatized Privatization (also privatisation in British English) can mean several different things, most commonly referring to moving something from the public sector into the private sector. It is also sometimes used as a synonym for deregulation when ...

in 2005. The airline was acquired by ''LAL Investicijų Valdymas'' (LAL Investment Management), a wholly owned subsidiary of the

FlyLal Group Avia Solutions Group is a provider of aviation capacity solutions for passenger and cargo airlines worldwide. Headquartered in Vilnius ( Lithuania), the group manages over 100 offices and production facilities globally and employs a majority of it ...

, for 27 million

Lithuanian litas The Lithuanian litas ( ISO currency code LTL, symbolized as Lt; plural ''litai'' (nominative) or ''litų'' (genitive) was the currency of Lithuania, until 1 January 2015, when it was replaced by the euro. It was divided into 100 centų (genit ...

. The airline was subsequently renamed flyLAL–Lithuanian Airlines. In February 2007, flyLAL was recognized as most punctual airline at

Gatwick Airport Gatwick Airport (), also known as London Gatwick , is a major international airport near Crawley, West Sussex, England, south of Central London. In 2021, Gatwick was the third-busiest airport by total passenger traffic in the UK, after H ...

London London is the capital and List of urban areas in the United Kingdom, largest city of England and the United Kingdom, with a population of just under 9 million. It stands on the River Thames in south-east England at the head of a estuary dow ...

.Lithuania's main airline wants its luck to change, so that it can realise its bold ambitions
March 4, 2008
The Economist Intelligence Unit
It had 542 employees as of March 2007. As of December 2007, the airline had three

Boeing 737-300 The Boeing 737 Classic is a series of narrow-body airliners produced by Boeing Commercial Airplanes, the second generation of the Boeing 737 series of aircraft. Development began in 1979 and the first variant, the 737-300, first flew in Februa ...

, five

Boeing 737-500 The Boeing 737 Classic is a series of narrow-body airliners produced by Boeing Commercial Airplanes, the second generation of the Boeing 737 series of aircraft. Development began in 1979 and the first variant, the 737-300, first flew in Februa ...

, and four

SAAB 2000 The Saab 2000 is a twin-engined high-speed turboprop airliner built by Swedish aircraft manufacturer Saab. It is designed to carry 50–58 passengers and cruise at a speed of . Production took place in Linköping in southern Sweden. The Saab ...

airliners and had plans for further expansion. During 2007, the number of passengers grew by 14% to 526,000. In 2008, charter flight services were transferred to sister company

FlyLal Charters Small Planet Airlines was a Lithuanian leisure airline based at Vilnius Airport with further bases throughout Europe. It was the subsidiary of the Small Planet Group which also owned sister companies in Cambodia, Germany, Italy, and Poland, all ...

, leaving only scheduled flights for FlyLal.

Bankruptcy

During 2008, FlyLAL-Lithuanian Airlines suffered from a

price war A price is the (usually not negative) quantity of payment or compensation given by one party to another in return for goods or services. In some situations, the price of production has a different name. If the product is a "good" in the ...

with

airBaltic airBaltic, legally incorporated as AS Air Baltic Corporation, is the flag carrier of Latvia, with its head office on the grounds of Riga International Airport in Mārupe municipality near Riga. Its main hub is Riga, and it operates bases ...

and slowing of the travel industry due to the global economic crisis. Despite the crisis, the number of passengers grew by 61% during 2008. In December 2008, the company admitted to suffering financial difficulties and having debts of 86 million litas (26.1 mln euros). It offered 51% of its shares to the

Government of Lithuania The Government of Lithuania ( lt, Lietuvos Vyriausybė), officially the Government of the Republic of Lithuania (''Lietuvos Respublikos Vyriausybė'', abbreviated ''LRV''), is the cabinet of Lithuania, exercising executive power in the countr ...

for a symbolic sum of 1 litas in exchange for a state guarantee of its debt. The government declined the offer. Shortly afterwards FlyLal announced that it would sell 100% of shares to SCH Swiss Capital Holdings, a previously unknown company registered in December 2008. The company was sold for US$1 million effective 23 January 2009. The new owners agreed to advance 1 million euros to cover some of the debts and prevent the cancellation of FlyLal's operating licence. When the advance was not received, the deal was terminated and FlyLal announced termination of its activities effective 17 January 2009. Another proposal for a government bailout was rejected on 23 January 2009. The bankruptcy of FlyLAL significantly reduced the number of direct flights from Vilnius, from 28 to 14 destinations, and the number of passengers at Vilnius Airport decreased by 43 percent.

Former destinations

Austria Austria, , bar, Östareich officially the Republic of Austria, is a country in the southern part of Central Europe, lying in the Eastern Alps. It is a federation of nine states, one of which is the capital, Vienna, the most populous ...

Innsbruck Airport Innsbruck Airport , also known locally as ''Kranebitten Airport'', is the largest international airport in Tyrol in western Austria. It is located approximately from the centre of Innsbruck. The airport, which was opened in 1925, handles region ...

(seasonal) *

Germany Germany,, officially the Federal Republic of Germany, is a country in Central Europe. It is the second most populous country in Europe after Russia, and the most populous member state of the European Union. Germany is situated betwe ...

: Frankfurt International Airport *

Hungary Hungary ( hu, Magyarország ) is a landlocked country in Central Europe. Spanning of the Pannonian Basin, Carpathian Basin, it is bordered by Slovakia to the north, Ukraine to the northeast, Romania to the east and southeast, Serbia to the ...

Budapest Ferihegy International Airport Budapest Ferenc Liszt International Airport ( hu, Budapest Liszt Ferenc Nemzetközi Repülőtér) , formerly known as ''Budapest Ferihegy International Airport'' and still commonly called just ''Ferihegy'', is the international airport serving t ...

* Lithuania:

Base *

Netherlands ) , anthem = ( en, "William of Nassau") , image_map = , map_caption = , subdivision_type = Sovereign state , subdivision_name = Kingdom of the Netherlands , established_title = Before independence , established_date = Spanish Netherl ...

: Amsterdam Airport Schiphol *

Russia Russia (, , ), or the Russian Federation, is a transcontinental country spanning Eastern Europe and Northern Asia. It is the largest country in the world, with its internationally recognised territory covering , and encompassing one-eig ...

Sheremetyevo International Airport Sheremetyevo Alexander S. Pushkin International Airport ( rus, links=no, Международный аэропорт Шереметьево имени А. С. Пушкина, p=ʂɨrʲɪˈmʲetʲjɪvə ''Mezhdunarodny aeroport Sheremetyevo imen ...

in Moscow *

Spain , image_flag = Bandera de España.svg , image_coat = Escudo de España (mazonado).svg , national_motto = ''Plus ultra'' (Latin)(English: "Further Beyond") , national_anthem = (English: "Royal March") , i ...

Madrid Barajas International Airport Madrid ( , ) is the capital and most populous city of Spain. The city has almost 3.4 million inhabitants and a metropolitan area population of approximately 6.7 million. It is the second-largest city in the European Union (EU), and ...

Málaga Airport Málaga Airport , officially Málaga–Costa del Sol Airport ( es, Aeropuerto de Málaga-Costa del Sol) since June 2011, is the fourth busiest airport in Spain after Madrid–Barajas, Barcelona and Palma de Mallorca. It is significant for Sp ...

(seasonal) *

Ukraine Ukraine ( uk, Україна, Ukraïna, ) is a country in Eastern Europe. It is the second-largest European country after Russia, which it borders to the east and northeast. Ukraine covers approximately . Prior to the ongoing Russian inv ...

Boryspil International Airport Boryspil International Airport ( uk, Міжнародний аеропорт «Бориспіль») is an international airport in Boryspil, east of Kyiv, the capital of Ukraine. It is Ukraine's largest airport, serving 65% of its passenger ...

in Kyiv *

United Kingdom The United Kingdom of Great Britain and Northern Ireland, commonly known as the United Kingdom (UK) or Britain, is a country in Europe, off the north-western coast of the European mainland, continental mainland. It comprises England, Scotlan ...

in London *

Georgia Georgia most commonly refers to: * Georgia (country), a country in the Caucasus region of Eurasia * Georgia (U.S. state), a state in the Southeast United States Georgia may also refer to: Places Historical states and entities * Related to the ...

Tbilisi Airport Shota Rustaveli Tbilisi International Airport ( ka, თბილისის შოთა რუსთაველის სახელობის საერთაშორისო აეროპორტი) , formerly ''Novo Alexeyevka In ...

References

External links