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Latvian aircraft leasing company with Malta office ceases operations

Latvian Aircraft Leasing Company with Malta Office Ceases Operations
SmartLynx Airlines Latvia, a prominent Latvian aircraft leasing and charter company with an operational office in Malta, has announced the cessation of its activities after three decades in the aviation industry. This decision follows a period marked by escalating financial difficulties, which intensified after the company was divested by its parent firm, Avia Solutions Group, last month.
Company History and Operational Challenges
Established 30 years ago, SmartLynx initially operated Russian-built aircraft before transitioning to a modern fleet comprising Airbus and Boeing models. Throughout its history, the company leased aircraft to various airlines, including Air Malta, and experienced multiple ownership changes. In 2019, SmartLynx expanded its presence by opening an office in Malta and launching a subsidiary, SmartLynx Malta, after securing an Air Operator Certificate from Maltese authorities. The Malta office became a central hub for administrative, operational, and maintenance functions, employing approximately 60 staff members and supporting the airline’s fleet of around 70 aircraft.
Despite this growth, the company faced persistent operational and maintenance challenges, compounded by a downturn in the cargo sector. These issues became insurmountable following the sale of SmartLynx by Avia Solutions Group to a Dutch investment fund. Notably, SmartLynx Airlines Malta and another subsidiary, SmartLynx Airlines Estonia, were reportedly excluded from the sale, with plans for their merger and rebranding currently underway.
Financial Impact and Industry Context
In an official statement, SmartLynx Latvia cited a comprehensive assessment of its financial position and long-term prospects as the basis for its decision to cease operations. Employees have expressed concerns on social media, reporting unpaid wages for several weeks and instances of staff stranded abroad.
The closure of SmartLynx Latvia occurs amid broader turbulence within the aviation sector. Finnair’s CEO recently highlighted the North Atlantic market as a significant challenge, while regional competitor Air Baltic has maintained an optimistic outlook following a return to profitability. Across the industry, airlines continue to prioritize fleet modernization and strategic adjustments in response to evolving market conditions.
SmartLynx’s shutdown highlights the ongoing volatility in the aviation market, as companies contend with operational disruptions and shifting economic pressures.

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