How Lithuania became an aviation hub without its own national airline

The overall contribution to global GDP that is supported by aviation is 3.9%, according to data from the International Air Transport Association (IATA), released in June 2025.

At first glance, countries without a national airline might seem to play only a minor role in contributing to this figure. However, the broader aviation ecosystem, including pilot training, aircraft maintenance, ground handling, fueling, baggage operations, and engineering, is just as significant when it comes to driving industry growth. 

So, how can a country become a leading aviation hub without operating its own airline? 

To explore this, AeroTime looked at Lithuania, a Baltic country succeeding in an industry dominated by nations with major carriers.

Growth without a national airline

The aviation sector contributes 2.8% to Lithuania’s GDP annually, and in 2024, the global annual turnover of major Lithuanian aviation companies reached €3.2 billion, according to data from LAVIA, the largest organization uniting Lithuanian aviation companies.

These results cannot be attributed to individual firms alone. In the absence of a national airline to act as a flagship for the industry, Lithuania’s aviation growth highlights the importance of collective organization. Industry associations, such as LAVIA, help coordinate strategy, represent the sector’s interests to government and regulators, and encourage collaboration across various service providers.

In an exclusive interview with AeroTime, Aleksandras Nemunaitis, the Chairman and CEO of LAVIA, shared that institutions usually prefer to work with associations instead of individual companies to avoid accusations of favoritism. 

“When you approach decision-makers, often politicians or regulators, you appear more credible if you represent an entire sector rather than just a single company,” Nemunaitis explained. 

He noted that these associations, including LAVIA, are officially registered and often have lobbying status.

“That is why organizations like ours exist: to represent, discuss, and present unified positions on issues important to the aviation industry,” said Nemunaitis, adding that all processes must remain open and transparent.

A small country’s roadmap for aviation growth

LAVIA’s capacity to unite the industry has enabled it to be a key player in developing long-term strategies with government officials.

One of the most notable examples of this was its contribution to creating the Lithuanian Aviation Guidelines for 2030. This was a collaborative effort between the aviation industry and government bodies, receiving approval from the country’s Ministry of Transport and Communications in 2022.

Nemunaitis stated that this strategy established objectives for the growth of Lithuania’s aviation sector, focusing on enhancing the country’s connectivity and appeal for aviation operations.

The document sets out a vision for Lithuania’s aviation sector, including at least 150 air destinations accessible from the country, the promotion of climate-friendly and sustainable aviation, a significantly higher ranking in global accessibility, and a target of increasing the sector’s contribution to national GDP to around 5% by 2030.

“This strategy was a very important achievement and a rare case of true cooperation, and today that strategy guides concrete actions and legislation,” he said. “We continue to explain to officials what decisions are needed to improve connectivity, tackle migration-related challenges, such as employing staff at airports, and more.”

Aleksandras Nemunaitis / Credit: LAVIAPreparing talent for a growing industry

To meet the goals set in the Lithuanian Aviation Guidelines for 2030, a skilled workforce is essential to support the country’s unified efforts in the aviation industry. Lithuanian aviation companies are currently active in over 25 countries. According to Nemunaitis, this shows that aviation involves more than just airlines. 

Nemunaitis points out that the industry is “large and diverse,” offering more than just roles for pilots and flight attendants, with positions available for engineers, mechanics, technicians, IT experts, marketers, and lawyers, among others.

The 2025 Aviation Talent Forecast, published during the Paris Air Show 2025 by global pilot training provider CAE, indicates that the aviation sector will require 1,465,000 new professionals in the next 10 years due to fleet growth, increasing travel demand, and high retirement rates. This includes a need for 300,000 pilots, 416,000 aircraft maintenance technicians, 678,000 cabin crew members, and 71,000 air traffic controllers.

Recent data from LAVIA shows that the industry currently generates approximately 15,000 direct and indirect jobs in the country, contributing nearly €100 million in taxes to the national budget each year.

To meet these growing workforce demands, Nemunaitis said LAVIA’s role includes not only making policy suggestions, but also supporting education to ensure the industry has the skilled professionals it needs.

“The core mission of our association is cooperation between business and education,” he added. “We work closely with universities, colleges, and vocational schools to ensure there are enough specialists for the aviation industry.”

Bridging the gap between drone industry and regulators

Beyond traditional aviation, LAVIA has been instrumental in advancing drone integration. Working with industry stakeholders and policymakers, the organization has helped position Lithuania as a leader in safely incorporating drones into shared airspace.

“Lithuania is actually considered one of the leading EU countries in integrating drones safely into airspace, thanks to cooperation between state and private actors,” Nemunaitis explained. “Drones are a fast-growing field, including civilian and defense applications, and LAVIA’s members are already actively engaged internationally.”

To comply with EU drone regulations, Lithuania’s air navigation service provider, Oro Navigacija, invested €2.5 million in June 2023 through a contract with Austrian company Frequentis to launch the country’s U-space service system.

The platform is designed to safely manage drone operations in shared airspace, enabling pilots to request flight approvals, access real-time traffic and weather data, and monitor other users through mobile applications.

Overcoming regulatory hurdles

But turning strategies into reality is not without obstacles. According to LAVIA, one recurring challenge is bureaucracy and what the association views as excessive caution from government bodies.

For example, Nemunaitis pointed to the requirement for annual background checks for employees who have been working at airports for many years. He suggested this process could be improved by continuous monitoring instead of repeating the same checks each year.

Another challenge, Nemunaitis said, is the timing of political decisions, which can be delayed at the end of a government’s term or when new officials lack experience. This, he argued, “slows down necessary reforms”.

Despite these obstacles, Nemunaitis believes that the aviation industry in Lithuania and the wider Baltic region still has plenty of room for growth.

“The Baltic region, and Lithuania in particular, punches above its weight. Governments must treat domestic investment the same as foreign investment. If businesses are ready to invest, the state should support them regardless of ownership origin,” he said. “If this is achieved, the aviation sector in the Baltics will grow very strongly.”

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