Employees of the defunct airline "SmartLynx Airlines" have been paid salaries and compensation for unused vacation days, reported former executive director of the company Edvinas Demenyus to the LETA agency.
He noted that after the cessation of operations of "SmartLynx," employees were offered to sign a mutual agreement. "We paid all employees their salaries up to the last day, as well as compensation for all unused vacation days," emphasized Demenyus.
He also added that a small number of people did not sign this agreement, so they will await the appointment of an insolvency administrator and will continue the process further.
According to Demenyus, there were approximately 400 employees in the structures of "SmartLynx" in Latvia, Malta, and Estonia in total.
Commenting on complaints circulated on social media that "SmartLynx" allegedly owed employees two months' salary, Demenyus called this "pure speculation," noting that all airline employees had been paid both salaries and vacation pay.
He explained that these individuals were not employees of "SmartLynx" and were not part of its employment structure. "SmartLynx" provided aircraft leasing and management services but did not operate direct flights. This means that if clients required crews, specialized agencies or service providers were responsible for that. Accordingly, the employment relationships of these workers were not with "SmartLynx," Demenyus explained.
He emphasized that these individuals should contact their employer or the agency with which they have a contract.
Demenyus also reported that currently, almost no one is working in the company, but small groups of employees remain, dealing with tasks such as returning aircraft.
When asked why individual agreements were made with employees instead of a collective liquidation, Demenyus replied that collective layoffs had been conducted earlier as part of the company's restructuring process, but at the time of cessation of operations, he believed it was fairer to proceed differently.
He added that on the day of the cessation of operations of "SmartLynx," employees were offered two options: either to sign a mutual agreement and receive payments on the same day or not to sign the agreement, apply to the guarantee fund for employee claims, and wait for the insolvency procedure to be completed.
Additionally, he reported that most of the aircraft of "SmartLynx" have already been deregistered, but the process of transferring the aircraft is quite lengthy, so just over ten employees are still working on this.
Earlier, the chairperson of the Latvian Aviation Union, Dace Kavas, explained that most of the stewards and pilots working in the structures of "SmartLynx" did not have employment contracts and worked under so-called service agreements through various agencies.
"These are the two most vulnerable groups, who are entitled to nothing, except for those who had official employment contracts. There were more than 300 of them, while the others, who actually ensured the flights, are not on the list of those to be laid off," she added.
As previously reported, on October 22 of this year, "SmartLynx Airlines" announced a change of ownership. The owners of the company became Demenyus (5%), the company's financial director Mindaugas Kazakavičius (5%), and the Dutch specialized investment fund Stichting Break Point Distressed Assets Management (90%).
The sole owner of "SmartLynx Airlines" was previously LLC "Smart Aviation Holding," owned by the group "Avia Solutions Group," the ultimate beneficiary of which is Gediminas Žemaitis, according to data from "Firmas.lv."
A few days later, on October 28, the Riga District Court initiated legal protection proceedings for "SmartLynx."
However, on November 24, "SmartLynx Airlines" ceased its business activities. At the same time, the company confirmed that the commercial activities of "SmartLynx Airlines Estonia" and "SmartLynx Airlines Malta" were also terminated, and all three air operator certificates (AOC) were suspended.
A petition for the recognition of "SmartLynx Airlines" as insolvent has been filed with the Riga District Court in Jurmala. The court hearing on this matter is scheduled for Wednesday, December 17.
Earlier, Demenyus informed the LETA agency that the total liabilities of "SmartLynx Airlines" to more than 700 creditors amount to about 238 million euros, of which 170 million euros, or about two-thirds, are liabilities to the previous owner — "Avia Solutions Group." He explained that this is the money that the previous owner invested in the company over the past years in the form of loans.
Last year, "SmartLynx Airlines" transported a total of 10.66 million passengers, which is 62.5% more than in 2023. The company operated a total of 68,085 flights, which is 43.4% more compared to the previous year (47,495 flights), while the volume of cargo transported decreased by 6.8% to 31,872 tons.
At the end of 2024, the airline's fleet consisted of 68 aircraft, one more than the previous year. However, in the spring of this year, the airline announced a 30% reduction in its fleet.
The turnover of "SmartLynx Airlines" in 2023 amounted to 339.027 million euros, and the profit was 11.089 million euros, according to data from "Firmas.lv." The turnover of the "SmartLynx Airlines" group amounted to 496.651 million euros, and the profit was 22.774 million euros. The financial results of the company for 2024 have not yet been published.
"SmartLynx Airlines" was registered in 1992, and the company's authorized capital is one million euros.
