With discussions about the fate of loss-making airline Air Lituanica showing no signs of stopping, President Dalia Grybauskaitė has called on Vilnius authorities to dispose of non-core activities.
"Air Lituanica" plane getting ready to take off
© DELFI / Šarūnas Mažeika

“President believes that it’s necessary for local authorities to dispose of non-core services and loss-making businesses. Local authorities should not engage in financial adventurism and then expect the state to take responsibility for that,” Daiva Ulbinaitė, spokeswoman for President, told the reporters after Grybauskaitė’s meeting with Vilnius mayor-elect Remigijus Šimašius earlier on Tuesday.

She later confirmed to BNS that the discussion had centred on such companies and projects as Air Lituanica.

Šimašius has repeatedly slammed the project of Air Lituanica, which he describes as an excessive burden for the city.

He said that the local authority would have to “smoothly exit” from the airline’s management if attempts to find an investor were unsuccessful.

Outgoing Vilnius authorities last week decided to increase the authorized capital of Start Vilnius by 6.872 million euros as it expects this will help Air Lituanica continue operations for some time. With the investor found, the air carrier might be rescued.

Leave a comment
or for anonymous commenting click here
By posting, you agree to terms
Read comments Read comments

New global sales trends have not bypassed Lithuania: “Pigu.lt” has announced two-week sale festival

Traditionally, November is a very busy month for global trade sector as everybody looks forward to new...

Higher oil prices boost inflation

Annual inflation accelerated to 2.9% in October compared to 2.4% in September. On a monthly basis...

Railsbank opens new office in Lithuania

Railsbank, a leading UK-based open-banking and RegTech platform, has opened a new office in Vilnius,...

Reduced Klaipėda seaport charges for container ships to boost the development of shipping

In order to create more favorable conditions for container ships, entering the Klaipėda seaport, the...

A digital creative agency has come up with the idea of how to attract more tourists to Vilnius

The Gediminas Castle, the Hill of Three Crosses and Užupis are probably the most popular tourist...