Reflect revival in the country's economy

Published: 7/12/2000

Lithuania's cash strapped flag carrier Lithuanian Airlines carried a record number of passengers in the May-June period, continuing the trend set by the 10.3% increase in the first quarter of 2000 and claiming the airline's recovery from the Russian financial crisis. On regular routes, the carrier flew 23,100 passengers in May an increase of 48% on the same month in 1999, which was then followed by 23,500 passengers in June, an increase of 30%. According to a local report, the airline has not seen this kind of demand in seven years, reflecting the revival in the Lithuanian economy, which grew by 4.4% in the first quarter and saw trade volumes rise by 8%. Load factors are also reaching an average of 60% for the airline and on some flights they are recording 100%. Routes showing particularly high growth are those across the Baltic, which grew by 125% to Stockholm, with Helsinki up by 50%. Elsewhere traffic to London was up by 76%, Paris by the 50% and even Moscow managed 15% higher ticket sales. In the cargo area the airline reported that it was hard pressed to keep up with demand. According to Kestutis Auryla, the airline's General Director, the recovery in the economy had boosted business travel and he felt that was the major contributor to the figures. Also contributing was the heavy traffic in Lithuanian bureaucrats according to reports in Lithuanian daily Lietuvos Rytas, as they travelled elsewhere in Europe negotiating the country's accession to the EU. For the airline, the boost in business could not have come at a better time as KLM, among others, is considering participating in the privatisation of 54% of the airline. KLM is reported to have recently visited Lithuanian Airlines and to be reserving their final decision on purchasing the 49% stake reserved for a strategic investor, until the resolution of the talks between BA and KLM.

Article ID: 1937