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Aviation News Release


Lithuanian airlines sold to Swiss firm

A Switzerland-based firm has purchased Lithuania's troubled FlyLAL airline, FlyLAL announced Friday.

Airline officials said that SCH Swiss Capital Holdings agreed to pay US$1 million for the shares and cover the carrier's debts of approximately euro1 million as part of the deal.

The Swiss investors expressed hope that they would be able to restructure and modernize the airline in two years.

Since it was privatized in 2005, FlyLAL has struggled under the weight of sizable debts, primarily to Vilnius International Airport, where it is based. "We do not see these debts as a big problem," said Jan Erik Jansson, CEO of SCH Swiss Capital Holdings. "We were looking for an airline to purchase, and this is a good company to invest in. With its skilled staff and huge experience, FlyLAL can be a very strong regional carrier," he added.

Copyright © 2005 The Associated Press. All rights reserved.

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