Sunday, January 18, 2009

Lithuania's FlyLAL airline has suspended its operations

VILNIUS, Lithuania - Lithuania's troubled FlyLAL airline says it has suspended its operations after a buyout deal by Swiss investment firm SCH Swiss Capital Holdings failed.

Airline officials says it terminated a preliminary agreement with the Swiss company after it failed to pay $1 million that would have cleared FlyLAL's debts and potentially saved it from bankruptcy.

Company Chief Executive Vytautas Kaikaris says the suspension was one of the few options left to try to save his company.

The Swiss company, which previously announced it would restructure and modernize the airline, was not immediately available for comment.

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