AUTHORISATION TO ACQUIRE THE SHARES OF THE AIR CARRIER COMPANY

The meeting of the Competition Council examined the application filed on 28 January 2008 by the joint Lithuanian and American company UAB Sanitex for the authorisation to implement a concentration deal by acquiring up to 100 percent of shares of AB flyLAL – Lithuanian Airlines in accordance with the filed notification. The authorisation for the concentration was granted having determined that the intended concentration will not result in a creation or strengthening of the dominant position or any significant weakening of competition in the relevant markets, including the markets of passenger and freight carriage, maintenance and repair of airplanes, travel agency services and other markets.

As indicated in the notification filed with the Competition Council by the applicant UAB Sanitex the underlying reason for the concentration is the investment into the air carrier company anticipating an appropriate return on financial investment. It has also been concluded that following the concentration AB flyLAL – Lithuanian Airlines will not change its type of activity, and the company will continue to be engaged in the passenger and freight air carriage operations.