Lithuanian airline, Air Lituanica ceased operations midday on Friday. The airline’s management, announced on its website that it was stopping all regular flights and that affected passengers would be serviced by Latvian airline, Air Baltic. Passengers traveling between May 22 and May 29 will receive new tickets from the airline and will have the option of requesting a refund from Air Lituanica.
According to online civil aviation forums the airline was troubled by ongoing aircraft leasing problems and was until recently, operating with just one aircraft. Ongoing financial losses were carried by Lithuanian taxpayers and triggered serious political conflicts in Lithuania.
Another Baltic Sea carrier, Estonian Air, is currently under investigation by the EU’s anti-trust regulator for aid it received from the Estonian government when recently underwent restructuring.