viation Business Group flyLAL Group Services AB has commenced legal procedures of
acquisition of ground services company Baltic Ground Services UAB. flyLAL Group Services is planning to acquire 100% of Baltic Ground Services shares from investment company Invalda AB.

“Our Group is carrying out strategic development of the range of services provided to air companies”,
stated CEO of flyLAL Group Services Mr. Linas Dovydėnas.  – “Acquisition of company Baltic Ground Services, in addition to training of pilots and flight attendants, technical maintenance of airplanes and ticket sale will enable us to offer also ground services to airlines”.

According to CEO of flyLAL Group Services, Baltic Ground Services is a promising rapidly-growing company: in three years of activities, itdoubled its turnover, provides services in as many as three airports by now.

Acquisition of Baltic Ground Services will enable the Group to accomplish formation of its services portfolio and will increase the value of Group flyLAL Group Services”, stated Mr. L. Dovydėnas. “Experience of ground services specialists will be useful when designing and constructing passengers terminal at Vilnius International Airport”.

At present, Baltic Ground Services holds 45% of the airplane ground servicing market in Vilnius Airport. The company provides services to passengers and aircrafts also in Kaunas and Riga international airports. The company is planning to start providing services in Palanga airport, as well.

Clients of the ground services company includes the following airlines: flyLAL – Lithuanian Airlines, Finnair, Aer Lingus, LOT, Flysmaland, airBaltic (provides a part of the ground services package), as well as global leader of express international delivery and logistics DHL.

Baltic Ground Services had been operating as an independent company since 2005, when it was separated from JSC Lithuanian Airlines.

July 3, 2008