The move comes after the Lithuania-based airline’s German subsidiary filed last month (September 18) and its Polish division on October 8.

In a statement, the airline said filing was a “vital step” for the company to protect it from the financial difficulties endured by its German and Polish operations after they “failed to manage rapid growth and increasing cost burden”.

The restructure will allow Small Planet Lithuania to take on the burden for the debts of its German and Polish divisions.

However, boss Kristijonas Kaikaris said the airline was still urgently seeking fresh investment.

Kaikaris said despite the Lithuanian airline forecasting operational profits of £3.4 million this year, the debts racked up by its German and Polish operations “will be greater than profit”.

The airline said the restructuring process will have no impact on Small Planet Lithuania operations and flights. “[The] Lithuanian company will continue its operations as planned and without a negative impact on the passengers.”

Kaikaris said: “There is a major difference between restructuring in Polish and German companies, and in Lithuania. Small Planet Airlines in Poland and Germany were loss-making companies, whereas Small Planet Airlines Lithuania continued to operate successfully this year – we expect our operational profit to reach 3,4 million EUR by the end of 2018.

“However, the debts accumulated due to the situation in Germany and Poland will be greater than profit.

“For the restructuring to be successful in Germany and Poland, finding a new investor is vital, whereas Lithuanian company can survive without it.

“However, we are leaving this option on the table and having talks with potential investors since additional financial injection would allow Small Planet Airlines Lithuania to go through the restructuring easier and faster.

“We believe restructuring will allow us to soften the potential negative impact for the Lithuanian company and continue its flight operations successfully into the future.”

The airline’s troubles come the same month Cyprus-based Cobalt Air and Lithuania-based Primera Air collapsed.