Saab and ATR are talking to Lithuanian Airlines about regional turboprops ahead of an expected move to consolidate the carrier's separate regional and domestic operations into a single unit.

The airline's domestic subsidiary, Air Lithuania, is to cease operations from the country's second city, Kaunas, and will phase out its current Soviet-era fleet.

The first stage of privatisation of the airline is due to get underway this week, with the selection of a management consultant to oversee the process.

The framework for the privatisation will be released by the end of October, after which bids will be despatched to airlines interested in taking a strategic stake of around 49%.

Liutauras Radzevicius, a director of the country's privatisation board, says that it will trim the operations of Air Lithuania, cutting half its personnel and reducing routes in a bid to make the whole airline group more attractive to investors.

Air Lithuania, which became a Lithuanian Airlines subsidiary in 1997, inherited six Aeroflot Yakovlev Yak-40s, to which it has recently added an ATR 42-300.

Lithuanian Airlines says Soviet-era aircraft are a hindrance to its plans, and hopes to shed the Yaks prior to any consolidation.

Saab says that it is talking with the airline group to move two Saab 340Bs and two Saab 2000s to new routes and the airline also says it is in talks with other suppliers of 50- to 70-seater turboprops.

Lithuanian Airlines is also in negotiations with leasing companies to acquire a second Boeing 737-300 and is discussing the possibility of a regional jet, but says fleet commonality is a concern. The airline currently flies only to European cities, but has trans-atlantic route ambitions.

Source: Flight International