Temporary capital of Lithuania during the invasion of Poland, to Lithuania according to the Soviet–Lithuanian Mutual Assistance Treaty. Since then Vilnius has been the capital of the Lithuanian SSR and then independent Lithuania. Lithuania refused to have diplomatic relations between Poland and Lithuania until the ultimatum of 1938. Railroad traffic, telegraph lines or even mail could not cross the Polish–Lithuanian border. Lithuania continued to declare Vilnius as its capital in all official documents, including the constitution. Since the city was controlled by Poland, all Lithuanian authorities were transferred to the city of Kaunas, which became the seat of the government. To reconcile reality with
Air Lithuania August 1997, the shares of Air Lithuania were transferred to the parent company Lithuanian Airlines. In May 2004, Air Lithuania was bought by Arijus, a Lithuanian transport and logistics company, and subsequently sold to World Aviation Capital, a British company. At the time of the sale the company had debts of approximately 20 million litas, while its annual gross income reached 40 million in 2004. The airline filed for bankruptcy in November 2005. It was the first airline bankruptcy in Lithuania. In 2004 the airline carried 54,500 passengers (24% increase over 2003). At first the airline used Tupolev Tu-134 and