[6] After a decade of loss-making operations, abortive plans to launch a trans-Atlantic service, and the widely criticized sale of landing slots at London Heathrow to cover some US$20 million in debt, Lithuanian Airlines was privatized in 2005.

During 2008, FlyLAL-Lithuanian Airlines suffered from a price war with airBaltic[11] and slowing of the travel industry due to the Great Recession.

It offered 51% of its shares to the Government of Lithuania for a symbolic sum of 1 litas in exchange for a state guarantee of its debt.

[14] Shortly afterwards FlyLal announced that it would sell 100% of shares to SCH Swiss Capital Holdings, a previously unknown company registered in December 2008.

[16] The new owners agreed to advance 1 million euros to cover some of the debts and prevent the cancellation of FlyLal's operating licence.