FlyLal
Encyclopedia
FlyLal was the national airline
of Lithuania
, based in Vilnius
. It operated domestic and international scheduled services. Its main base was Vilnius International Airport
.
Due to financial difficulties, FlyLal suspended operations on 17 January 2009. 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.
. It was organized on the basis of the Aeroflot
fleet located in Vilnius
(twelve Yak-42, seven Tu-134, four An-24, and three An-26). During the period from 1991 to 1993, the airline reoriented its route network from the countries of the former Soviet Union to Western Europe. In December 1991, the Lithuanian Airlines sub-leased its first Boeing 737-200 from the Malév Hungarian Airlines
. Six months later it was leased directly from Guinness Peat Aviation
and bore registration LY–GPA. From the beginning, the airline faced stiff competition with Lufthansa
and Scandinavian Airlines.
After a decade of a loss-making operation, abortive plans to launch a trans-Atlantic service, the widely criticized sale of landing slots at London Heathrow to cover some 20 million of USD in debt, it was privatized
in 2005. The airline was acquired by LAL Investicijų Valdymas, a wholly owned subsidiary of the FlyLal Group, for 27 million litas
. The airline was subsequently renamed as FlyLal – Lithuanian Airlines. In February 2007, FlyLal was recognized as most punctual airline at Gatwick Airport, London. It had 542 employees as of March 2007. As of December 2007, the airline had three Boeing 737-300, five Boeing 737-500 and four SAAB 2000
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
leaving only schedules flights for FlyLal.
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 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.
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. The company was sold for $1 mln effective 23 January 2009. The new owners agreed to advance 1 mln 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 government bailout was rejected on January 23. 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%.
Airline
An airline provides air transport services for traveling passengers and freight. Airlines lease or own their aircraft with which to supply these services and may form partnerships or alliances with other airlines for mutual benefit...
of Lithuania
Lithuania
Lithuania , officially the Republic of Lithuania is a country in Northern Europe, the biggest of the three Baltic states. It is situated along the southeastern shore of the Baltic Sea, whereby to the west lie Sweden and Denmark...
, based in Vilnius
Vilnius
Vilnius is the capital of Lithuania, and its largest city, with a population of 560,190 as of 2010. It is the seat of the Vilnius city municipality and of the Vilnius district municipality. It is also the capital of Vilnius County...
. It operated domestic and international scheduled services. Its main base was Vilnius International Airport
Vilnius International Airport
Vilnius International Airport is the largest civil airport in Lithuania. It is located south of Vilnius, the capital of Lithuania. It began operations in 1944. The old terminal was built in 1954.- History:...
.
Due to financial difficulties, FlyLal suspended operations on 17 January 2009. FlyLal's sister airline, FlyLal Charters
FlyLAL Charters
Small Planet Airlines UAB is a European charter airline headquartered in Vilnius, Lithuania. It was established in 2007 when charter flights were separated from FlyLal, the national airline of Lithuania. The company holds Air Operator Certificates in Lithuania, Estonia, Poland and Italy...
, continues to operate normally under a separate license, although in July 2010, FlyLal Charters was rebranded as Small Planet Airlines.
Establishment and privatization
The airline was established as government-owned Lietuvos Avialinijos on 20 September 1991, shortly after Lithuania's independence from the Soviet UnionAct of the Re-Establishment of the State of Lithuania
The Act of the Re-Establishment of the State of Lithuania or Act of March 11 was an independence declaration by the Lithuanian Soviet Socialist Republic adopted on March 11, 1990...
. It was organized on the basis of the Aeroflot
Aeroflot
OJSC AeroflotRussian Airlines , commonly known as Aeroflot , is the flag carrier and largest airline of the Russian Federation, based on passengers carried per year...
fleet located in Vilnius
Vilnius
Vilnius is the capital of Lithuania, and its largest city, with a population of 560,190 as of 2010. It is the seat of the Vilnius city municipality and of the Vilnius district municipality. It is also the capital of Vilnius County...
(twelve Yak-42, seven Tu-134, four An-24, and three An-26). During the period from 1991 to 1993, the airline reoriented its route network from the countries of the former Soviet Union to Western Europe. In December 1991, the Lithuanian Airlines sub-leased its first Boeing 737-200 from the Malév Hungarian Airlines
Malév Hungarian Airlines
Malév Hungarian Airlines is the flag carrier and principal airline of Hungary. It has its head office in the Lurdy House in Budapest, with its main operations at Budapest Ferenc Liszt International Airport. From there, the airline flies to 50 cities in 34 countries worldwide using a fleet of 22...
. Six months later it was leased directly from Guinness Peat Aviation
Guinness Peat Aviation
Guinness Peat Aviation was a Commercial Aircraft Sales and Leasing company set up in 1975 by Aer Lingus, the Guinness Peat Group and Tony Ryan, then an Aer Lingus executive.-History:...
and bore registration LY–GPA. From the beginning, the airline faced stiff competition with Lufthansa
Lufthansa
Deutsche Lufthansa AG is the flag carrier of Germany and the largest airline in Europe in terms of overall passengers carried. The name of the company is derived from Luft , and Hansa .The airline is the world's fourth-largest airline in terms of overall passengers carried, operating...
and Scandinavian Airlines.
After a decade of a loss-making operation, abortive plans to launch a trans-Atlantic service, the widely criticized sale of landing slots at London Heathrow to cover some 20 million of USD in debt, it was privatized
Privatization
Privatization is the incidence or process of transferring ownership of a business, enterprise, agency or public service from the public sector to the private sector or to private non-profit organizations...
in 2005. The airline was acquired by LAL Investicijų Valdymas, a wholly owned subsidiary of the FlyLal Group, for 27 million litas
Lithuanian litas
The Lithuanian litas is the currency of Lithuania. It is divided into 100 centų...
. The airline was subsequently renamed as FlyLal – Lithuanian Airlines. In February 2007, FlyLal was recognized as most punctual airline at Gatwick Airport, London. It had 542 employees as of March 2007. As of December 2007, the airline had three Boeing 737-300, five Boeing 737-500 and four SAAB 2000
Saab 2000
|-See also:-References:* Lambert, Mark. Jane's All The World's Aircraft 1993–94. Coulsdon, UK:Jane's Data Division, 1993. ISBN 0 7106 1066 1....
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
FlyLAL Charters
Small Planet Airlines UAB is a European charter airline headquartered in Vilnius, Lithuania. It was established in 2007 when charter flights were separated from FlyLal, the national airline of Lithuania. The company holds Air Operator Certificates in Lithuania, Estonia, Poland and Italy...
leaving only schedules flights for FlyLal.
Bankruptcy
During 2008, FlyLal suffered from price war with AirBalticAirBaltic
A/S Air Baltic Corporation, operating as AirBaltic and styled as airBaltic, is the Latvian flag carrier airline and a low-cost carrier, with its head office on the grounds of Riga International Airport in Mārupe municipality, near the capital, Riga...
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 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.
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. The company was sold for $1 mln effective 23 January 2009. The new owners agreed to advance 1 mln 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 government bailout was rejected on January 23. 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%.
Former destinations
- AustriaAustriaAustria , officially the Republic of Austria , is a landlocked country of roughly 8.4 million people in Central Europe. It is bordered by the Czech Republic and Germany to the north, Slovakia and Hungary to the east, Slovenia and Italy to the south, and Switzerland and Liechtenstein to the...
: Innsbruck AirportInnsbruck Airport-External links:*...
[seasonal] - GermanyGermanyGermany , officially the Federal Republic of Germany , is a federal parliamentary republic in Europe. The country consists of 16 states while the capital and largest city is Berlin. Germany covers an area of 357,021 km2 and has a largely temperate seasonal climate...
: Frankfurt International AirportFrankfurt International AirportFrankfurt am Main Airport , or simply Frankfurt Airport, known in German as Flughafen Frankfurt am Main or Rhein-Main-Flughafen, is a major international airport located in Frankfurt, Germany, southwest of the city centre.... - HungaryHungaryHungary , officially the Republic of Hungary , is a landlocked country in Central Europe. It is situated in the Carpathian Basin and is bordered by Slovakia to the north, Ukraine and Romania to the east, Serbia and Croatia to the south, Slovenia to the southwest and Austria to the west. The...
: Budapest Ferihegy International AirportBudapest Ferihegy International AirportBudapest Liszt Ferenc International Airport , formerly known as Budapest Ferihegy International Airport, is the international airport serving the Hungarian capital city of Budapest, and the largest of the country's five international airports. The airport offers international connections primarily... - LithuaniaLithuaniaLithuania , officially the Republic of Lithuania is a country in Northern Europe, the biggest of the three Baltic states. It is situated along the southeastern shore of the Baltic Sea, whereby to the west lie Sweden and Denmark...
: Vilnius International AirportVilnius International AirportVilnius International Airport is the largest civil airport in Lithuania. It is located south of Vilnius, the capital of Lithuania. It began operations in 1944. The old terminal was built in 1954.- History:...
Hub - NetherlandsNetherlandsThe Netherlands is a constituent country of the Kingdom of the Netherlands, located mainly in North-West Europe and with several islands in the Caribbean. Mainland Netherlands borders the North Sea to the north and west, Belgium to the south, and Germany to the east, and shares maritime borders...
: Amsterdam Airport Schiphol - RussiaRussiaRussia or , officially known as both Russia and the Russian Federation , is a country in northern Eurasia. It is a federal semi-presidential republic, comprising 83 federal subjects...
: Sheremetyevo International AirportSheremetyevo International AirportSheremetyevo International Airport , is an international airport located in the Moscow Oblast, Russia, north-west of central Moscow. It is a hub for the passenger operations of the Russian international airline Aeroflot, and one of the three major airports serving Moscow along with Domodedovo...
in Moscow - SpainSpainSpain , officially the Kingdom of Spain languages]] under the European Charter for Regional or Minority Languages. In each of these, Spain's official name is as follows:;;;;;;), is a country and member state of the European Union located in southwestern Europe on the Iberian Peninsula...
: Madrid Barajas International AirportMadrid Barajas International AirportMadrid-Barajas Airport is the main international airport serving Madrid in Spain. In 2010, over 49.8 million passengers used Madrid-Barajas, making it the country's largest and busiest airport, and in 2009 it was the world's 11th busiest airport and Europe's fourth busiest airport. It opened...
& Málaga AirportMálaga AirportMálaga Airport , also known as Malaga Costa Del Sol Airport and Pablo Ruiz Picasso Airport, is the fourth busiest airport in Spain after Madrid-Barajas, Barcelona and Palma de Mallorca. It is an important airport for Spanish tourism as it is the main international airport serving the Costa Del Sol....
[seasonal] - UkraineUkraineUkraine is a country in Eastern Europe. It has an area of 603,628 km², making it the second largest contiguous country on the European continent, after Russia...
: Boryspil International Airport in Kiev - United KingdomUnited KingdomThe United Kingdom of Great Britain and Northern IrelandIn the United Kingdom and Dependencies, other languages have been officially recognised as legitimate autochthonous languages under the European Charter for Regional or Minority Languages...
: Gatwick Airport in London
External links
- FlyLal official website (Archive)