Lithuania's FlyLAL airline has suspended operations after a buyout deal by Swiss investment firm SCH Swiss Capital Holdings fell through.
The Swiss company was due to pay the $1 million that would clear the troubled airline's debts.
The suspension left many passengers stranded and seeking either reimbursement or alternative routes. The airline said more than 29,400 passengers with existing bookings would have to change their travel plans because of its move.
In a statement released Saturday morning, the airline said it was forced to make the move to stem its losses and not make things worse for its creditors.
A spokesman said "unfair market conditions, record-high oil prices and low demand for winter season flights" were the main reasons for the airline's plight.
FlyLAL will file for bankruptcy if no proposals for future airline development are received in the next few days. The airline employs about 360 people.
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