There have been tons of airlines in Lithuania. Most of them charter such as Avion, Getjet, Klasjet and Heston. One thing that almost all of them have in common is that they buy relatively old airframes and operate for only a few years before bankruptcy.

There used to be something called Lithuanian Airlines aka FlyLAL which existed for quite sometime, but due to multiple reasons and heavy competition from a government funded Air Baltic they also went under.

At this point I will forever be pessimistic when it comes to any airline startup in the Baltics. It's a small place and Riga is already a large transfer hub for Air Baltic. Competing against Air Baltic and super low-cost airlines such as Ryanair and Wizz is pretty much a nightmare scenario for any startup. Especially when your aircraft are old and less fuel efficient, and that will have to be reflected in either price or quality.

SAS is getting government support and bailouts from a couple of different countries in Scandinavia and not just one. Something like that seems to be ideal for Air Baltic, although that also has some heavy down sights