Latvian carrier SmartLynx Airlines is ceasing commercial operations after more than three decades, just a month after its divestment by former owner Avia Solutions Group.
SmartLynx chief executive Edvinas Demenius and chief financial officer Mindaugas Kazakevicius acquired the carrier with the support of a Dutch investment fund.
But it filed for a legal protection process on 28 October, according to Latvia’s insolvency register, which states that Riga’s district court appointed a supervisor.
SmartLynx says it is ceasing operations effective 24 November, following an evaluation of its financial situation and long-term prospects.
“This difficult decision was made after carefully assessing all possible scenarios for continued operations,” says Demenius.
“Unfortunately, under the current circumstances, it has been concluded that it is no longer possible for the company to continue its activity.”
SmartLynx’s Latvian operation lists 12 Airbus A320s and A321s in its fleet, including converted A321 freighters.
The carrier says the decision to shut down was “not taken lightly”.
“We started as a small Latvian airline with big dreams, and over 33 years grew into an international family known for resilience, adaptability and a spirit that never backed down,” it states.
SmartLynx originated as a carrier called LatCharter in the early 1990s, initially operating Soviet-era jets, before being acquired by Icelandair Group in 2006.
Following the financial restructuring of Icelandair Group, it entered an agreement through which SmartLynx’s management purchased the entire share capital of the Latvian carrier.
The company established other SmartLynx-branded operations in Estonia and Malta.
Avia Solutions Group took over SmartLynx’s parent firm, SIA Smart Aviation Holdings, in October 2019 during a consolidation period which also included separate acquisition of aviation companies AviaAM, Avion and Bluebird Nordic.
But Avia Solutions disclosed in October this year that it would undertake a restructuring of the SmartLynx operation, selling the Latvian division but retaining the Estonian and Maltese arms with a view to merging them.
