Budget, Financial Services, Lithuania, Loan, Transport

International Internet Magazine. Baltic States news & analytics Wednesday, 04.10.2023, 21:21

Kubilius: Star1 Airlines loans not to be covered from budget

Danuta Pavilenene, BC, Vilnius, 06.10.2010.Print version
The prime minister of Lithuania has voiced his doubts as to the transport minister's proposal to reimburse part of the losses incurred by the passengers of Star1 Airlines from the state budget.

"No such funds are available in the budget. I really do not know whether it would be wise to (...) transfer the losses suffered by a private company on the shoulders of taxpayers," Andrius Kubilius said on the Lithuanian Radio.


"In this situation, all the insurance mechanisms should operate to help people to avoid greater losses," the prime minister said.


On Friday, Transport Minister Eligijus Masiulis said that the state could recover its money from the company in court afterwards.


It is estimated that Star1 Airlines has sold almost 16,000 tickets to the flights that will not be operated. The airline owes about 3.5 million litas (0.99 million euros) to its passengers.

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