Swiss Capital Has Turbulent Times Ahead With flyLAL

Lithuania's state-owned airline, flyLAL, has a second chance to become a regional carrier. The troubled airline has entered into an agreement to be 100% bought by SCH Swiss Capital Holdings, an investment fund. Although the price of the deal has not been officially disclosed, it has been reported that Swiss Capital will pay US$1mn for the airline and contribute EUR1mn (US$1.34mn) to cover its debts. After being privatised in 2005, its owners ran up its debt, and when they were unable to cover its obligations, they turned to the government.

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