SmartLynx Airlines ceases operations following unsuccessful rescue attempt
In October, Avia Solutions Group (ASG) sold SmartLynx Airlines to a group of investors, including two of the airline's C-level executives.
SmartLynx Airlines, a Latvia-based aircraft, crew, maintenance, and insurance (ACMI) operator, has announced that it will be ceasing commercial operations with immediate effect, several weeks after the airline had initiated a restructuring process in Latvia.
On November 24, 2025, SmartLynx issued a statement, confirming that as of today, it has ceased commercial operations. The airline cited a “thorough assessment of our situation and long-term outlook,” adding that the decision 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.”
The airline thanked its teams, partners, clients, and friends, concluding its statement that while it might be closing its operations, its spirit will continue flying.
SmartLynx Airlines was part of Avia Solutions Group (ASG), which has several other wet lease operators within its portfolio, including other SmartLynx Airlines brands: SmartLynx Australia and Thai SmartLynx Airlines.
While the latter two will continue flying as part of the group, ASG divested the Latvia-based company in late October. A Netherlands-based investment firm, Stichting Break Point Distressed Assets Management, as well as Edvinas Demenius, the Chief Executive Officer (CEO), and Mindaugas Kazakevičius, the Chief Financial Officer (CFO) of SmartLynx Airlines, took over the company.
The Dutch investment firm, which was founded in September, took a 90% stake, while the two executives split 5% each.
Planespotters.net records showed that since October 5, 15 Airbus A320ceo family aircraft, including four A321ceo and one A321 passenger-to-freighter (P2F) converted aircraft, left SmartLynx Airlines’ fleet.
One A321ceo, registered as YL-LDS, should be welcomed by Turkish Airlines, while another A320ceo, registered as YL-LCT, should remain with Nigeria’s Air Peace. The others, according to planespotters.net, are stored at various European airports, including Tarbes-Lourdes-Pyrenees Airport (LDE), where many aircraft were parked during the pandemic, some permanently.
SmartLynx Malta currently has another 11 aircraft, including one Boeing 737 MAX 8, while SmartLynx Estonia has another quintet of A320ceos. All 16 aircraft are parked, per planespotters.net.
However, some called the sale and reorganization foul play. Blacklist.aero, a company that tracks defaulting companies within the aviation industry, questioned why investors, including the two executives, would buy a company with a debt of €238 million ($274.1 million).
Out of the sum, €174.3 million ($200.7 million) is owed to other ASG companies, Blacklist pointed out, noting that the company sees “indicators of intentional bankruptcy and possible fraud” related to the changes to SmartLynx Airlines’ ownership.
“Immediately prior to filing for protection from creditors, the sale of the company retained management control and resulted in business division, creating an impression of a premeditated plan of debt isolation and beneficiary protection.”
In a follow-up post on LinkedIn, Artem Degtiarov, the CEO of Blacklist, said that some creditors have claimed that “the airline owes them far more than what was listed in its creditor registry.”
“A widely shared opinion is that Avia Solutions Group funneled the entire group’s losses into one 'sacrificial vehicle’ —a so-called 'toxic bin’ company used to dump liabilities and regulatory issues once nothing of value remains,” he added.
Meanwhile, Nowel Ngala, the Chief Commercial Officer (CCO) of Air Peace, stated that SmartLynx Airlines’ bankruptcy resulted in over $15 million of losses to the Nigerian airline, adding that the Latvian carrier’s decision to suddenly take back four A320ceos it had been wet leasing to Air Peace was “a serious breach of contract, fraudulent, and a premeditated scheme,” according to ch-aviation.
Latvijas sabiedriskais medijs (LSM), the Latvian public broadcaster, reported that SmartLynx Airlines had also owed €522,126 ($610,458) to the Latvian government.
SmartLynx Airlines is the third European airline to go bankrupt in recent months, following the collapse of Braathens International Airways and PLAY in September. In addition, two United Kingdom-based regional carriers, Eastern Airways and Blue Islands, ceased operations in October and November, respectively.
Rytis Beresnevicius
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