Air Lituanica, an airline established by the city of Vilnius, plans to file for bankruptcy, it announced a week after grounding all flights.
© DELFI / Šarūnas Mažeika

New CEO of the air carrier, Nerijus Jukna, would seek the management board’s approval for the opening of bankruptcy proceedings, Air Lituanica said on Thursday.

“Initially we thought that bankruptcy is not necessary. But now it has been decided to address this issue to the management board, which should make a decision within a month,” Sandra Meškauskaitė, spokeswoman for Air Lituanica, told BNS.

Earlier this week, a Vilnius court gave Air Lituanica 20 days to pay 150,000 euros it owes to Lietuvos Oro Uostai (Lithuanian Airports), the operator of Lithuania’s three major international airports.

Vilnius Mayor Remigijus Šimašius has said that the airline’s bankruptcy might cost more than 1 million euros to the city.

The airline, which is majority-owned by Vilnius local authority, said in a statement on May 22 that it was ceasing operations. Its flights scheduled up till June 5 have been taken over by Latvia’s airline airBaltic.

Air Lituanica last year suffered a loss of around 10 million euros, up from a loss of 5 million euros recorded in 2012-2013.

It is prohibited to copy and republish the text of this publication without a written permission from UAB „BNS“.

Ignitis Group plans to delist its subsidiaries from Nasdaq Vilnius

Lithuania's state-owned energy group Ignitis Grupe (former Lietuvos Energija ) is planning to...

Norwegians press exporters to cut prices amid weakening krone

The weakening of Norway 's krone against the euro has not yet hit Lithuanian exports to the...

Lithuanian Post's board refuse to stay on after ministry orders halt to sale of buildings

Independent members of the management board of Lietuvos Pastas ( Lithuanian Post ) have refused to...

Lithuanian gears up for reconstruction of Via Baltica's section until Polish border

Lithuania's Road Administration is getting ready for the 300 million euro worth reconstruction of...

SAI Global to open Centre of Excellence in Vilnius

A multinational leading provider of integrated risk management solutions, assurance and property...