Avia Solutions Group has sold SmartLynx Airlines (6Y, Riga) to its management and a Dutch fund as it begins consolidating its European airlines and brands. SmartLynx Airlines Estonia and SmartLynx Airlines Malta remain within the holding but will be merged into a single unit and rebranded.

The group said that it was exploring "further efficiency enhancements" as it aims to operate around 27-30 aircraft on each of its AOCs. It aims to retain three brands in Europe but did not provide further details of the plan.

"By consolidating our European AOCs and expanding into counter-cyclical markets in Asia Pacific and Latin America, we aim to optimise year-round operations," the holding's CEO Jonas Janukenas said.

SmartLynx Airlines confirmed to ch-aviation that the company will continue to operate as an independent firm. It is now co-owned by dedicated Dutch investment fund Stichting Break Point Distressed Assets Management (with a 90% share), CEO Edvinas Demenius, and Vice-President Finance Mindaugas Kazakevicius (5% each).

Before the divestment, SmartLynx Airlines was wholly owned by Smart Aviation Holdings, itself a 100% subsidiary of Avia Solutions Group. The airline currently operates eleven A320-200s and four A321-200s, as well as a single A321-200(P2F), which is due to be retired at the end of October 2025.

The Latvian airline was struggling, particularly in 2024, with poor reliability and low customer satisfaction, which it partially attributed to the diversified fleet and business model. It has also been mired in a number of high-profile and costly litigations, including a EUR1.5 million euro (USD1.7 million) compensation lawsuit won by TUI Group and a lengthy legal stand-off with GTLK - State Transport Leasing over cargo conversions and the impact of sanctions on the Russian lessor.

As part of its "back to the basics" transformation, SmartLynx Airlines planned to focus solely on A320/A321 ACMI and charter business.

AOC consolidation

Avia Solutions Group's European AOCs also include Ascend Airways in the UK, Avion Express and KlasJet in Lithuania, Avion Express Malta, and AirExplore in Slovakia.

The holding's spokesperson told ch-aviation that the details of the consolidation have yet to be nutted out. SmartLynx Airlines Estonia and Malta will merge and rebrand, but the group has not yet confirmed which AOC will they retain and what brand will they have.

Estonian corporate records show that the Latvian parent holding used to own a 100% stake in SmartLynx Estonia until September 2023 and later remained a minority shareholder with a 23.08% stake until early September 2025. On September 10, ASG Aero Invest Ireland DAC, an SPV for Avia Solutions Group, acquired a 100% stake in the Estonian company. The airline has five A320-200s on its AOC.

Finally, the Maltese unit is co-owned by Air Holding Limited, a Maltese investment vehicle with a near-total ownership of 99.95%, and SmartLynx Airlines with a single share granting it a 0.05% stake. Air Holding itself is co-owned by Avia Solutions Group, which holds 97% of shares, SmartLynx Airlines (2.99% of shares), and SmartLynx Estonia (a single share). However, the three shareholders have shares of different classes.

SmartLynx Airlines Malta operates nine A320-200s, one A321-200, three A321-200(P2F)s, three inactive A321-200(PCF)s, and two B737-8s. However, the freighters are slated for imminent retirement, while the two remaining B737-8s will be transferred to sister airline Ascend Airways.

The same brand is currently used for ASG's Thai SmartLynx Airlines and SmartLynx Australia. The future of these brands has not been decided yet.

ch-aviation data shows that currently, only Avion Express reaches the desirable fleet size of 27-30 aircraft. The company operates 39 aircraft (thirty-eight A320s and one A321) in Malta, and 16 in Lithuania (fifteen A320s and one A321). Ascend Airways operates six B737-8s and one B737-800, while AirExplore's fleet comprises nine B737-800s, one B737-800(BCF), and three B737-800(SF)s.

The spokesperson confirmed that the changes would not affect affiliate BBN Airlines Türkiye.