Smartlynx Airlines, one of the most “silent” players in the European wet-leasing model, has been driven into sudden bankruptcy, leaving its fleet grounded and hundreds of employees unemployed.
The collapse of a company that collaborated with major European carriers – including Eurowings – raises questions about what really led to its abrupt end.
Smartlynx, which operated with twelve Airbus A320 family aircraft, operated on a “third-party services” model, that is, leasing aircraft and crew to other companies rather than operating its own routes. A model that has seen significant growth in recent years, but at the same time is characterized by intense competition, high operating costs and instability in demand – factors that in 2025 already led several airlines to financial impasse.
Although the company’s financial situation was burdened, the speed of the bankruptcy took the market by surprise. On October 28, Smartlynx had filed for protection at the Riga District Court, aiming to gain time for restructuring and financial stabilization. However, just a few weeks later, its operations were completely suspended.
At the same time, a surprise change of ownership was also recorded. Avia Solutions Group transferred 90% of Smartlynx’s European companies to the Dutch fund Stichting Break Point Distressed Assets Management, while the remaining 10% was given to the company’s management.
Officially, this move was presented as a restructuring effort, but many analysts interpret it as an attempt to shift responsibilities and risks. According to Blacklist.aero, Smartlynx had accumulated debts of 238 million euros.
Smartlynx itself spoke of a “difficult but inevitable decision.” The airline stressed that continuing its operations was not possible under the current circumstances. Industry experts point to the tense situation in the European aviation market in 2025, where several airlines, including Play, Braathens International, Eastern Airlines – and most recently Blue Wings – were forced to file for bankruptcy.
However, according to fvw, some questions remain about Smartlynx. Why was the fleet grounded so abruptly while bankruptcy proceedings were still ongoing? Why did the change of ownership happen so soon before the bankruptcy? And what was the role of the new fund? These questions remain unanswered – fuelling speculation about strategic maneuvering behind the scenes.
The company had been repeatedly criticized on various issues, such as the working conditions of its pilots. In a survey by the European Cockpit Association, Smartlynx came in last place in Europe, scoring just 15 points out of 100 – well below the likes of Wizz Air and Ryanair.
Low pay, the employment of pilots through an office in Dubai to circumvent European labor laws, and flight scheduling instability were among the serious complaints. In addition, the company was often accused of significant delays, lost luggage and flight cancellations. It is no coincidence that Condor terminated its cooperation with it in 2023, while this year it found itself in a legal dispute with TUI.
