Latviski English По-русски
Tuesday 22.08.2017 | Name days: Rudīte, Everts

Latvia loses court process against Ryanair; losses could reach three million

(No Ratings Yet)

Baltic news, News from Latvia, BNN.LV, BNN-NEWS.COM, BNN-NEWS.RULatvia in the face of Riga International airport has lost the court process against Irish low-cost airline Ryanair in the London Court of International Arbitration and will be obligated to pay EUR 802,000 to the airline to cover its losses, curt expenses and other court-related expenses.

The court of arbitration also agreed that Ryanair did not have to pay additional fee for air navigation services, which means it is no longer obligated to pay its debt of nearly EUR 2 million to the airport, as reported by Pietiek.

Information regarding the court process and other details shows that Latvia has failed to convince the court that the contract between Riga International airport and Ryanair signed by once the Latvian Transport Minister Ainars Slesers was illegal. There are details stated in documents that confirm Slesers was, indeed, the main driving force behind the signing of the contract, which was once unsuccessfully investigated by the Corruption Prevention and Combating Bureau.

Even though the decision was made by the court of arbitration one and a half months ago, decisions regarding any compensation for Ryanair have yet to be made. Information regarding details of the court process and the court ruling, which takes up 66 pages, are currently in the hands of involved law firms.

However, information from sources shows that the court has recognized nearly all requests of Ryanair and has declined Riga airport’s counter-claim regarding a EUR 2 million compensation for the Irish airline’s unpaid debts. The court based its decision on ex-minister Slesers’ July 23rd, 2004 signed and December 10th, 2007 amended contract between Ryanair and Riga airport.

This contract states that the fee Ryanair is to pay to Riga airport includes runway maintenance services and fee for air navigation services in the terminal zone, as well as ‘any other taxes, duties and fees that apply to Ryanair’s passenger and transport services at Riga airport that exist or may be introduced by the state or airport.’

The conflict surrounding expensive air navigation services, which are provided by another state company (Latvijas Gaisa satiksme), was one of the central matters discussed in the court of arbitration. LGS had previously won court processes in Latvian courts with Ryanair. Now the London court has ordered LGS to compensate Ryanair court expenses worth EUR 13.4 thousand.

In its interpretation of the contract signed during Slesers’ time as minister, the court of arbitration concluded that the fee for air navigation services was already included in the contract between Ryanair and the airport. The growing argument about air navigation fees was the reason why Ryanair has not been paying the airport its dues. The total amount of debt the airline has before the airport is approximately EUR 2 million. It can be concluded from the ruling of the court of arbitration that the airline had good reasons not to pay. With that, it is likely the airport will never get back the money.

The ruling of the London court not only cements consequences caused by Slesers’ illegal contract, but also reveals the matter regarding the overall legality of the airport’s introduced security fee, which has been in play since January 1st, 2012 and has been collecting additional fees from Ryanair passengers since then. The court has informed Ryanair that the airline has the right to inform its passengers that they were not obligated to pay the security fee in the first place, and that they are now have the right to request their money be returned to them.


Leave a reply

  1. Ruta says:

    I don’t think I will make the claim from the airport. Last year I used Ryanair 14 times to fly to UK. It would be terrible if the airport went bust and closed.

    Thumb up 0 Thumb down 0

  2. mike walsh says:

    Maybe someone will make my day and prove me wrong. For years I have been saying that the Baltic States international services are archaic, almost Soviet era. Compare the figures of Sweden and Norway’s air traffic and international airports. The airport at Vilnius is smaller than an air training camp in Southport, an English seaside resort. Spain is second only to the United States in tourism; try catching a flight there from the Baltic States.

    Thumb up 0 Thumb down 0

    • jj says:

      Well I fly to Barcelona regularly with no problem – AirBaltic has two flights a day direct from Riga.

      Thumb up 0 Thumb down 0

    • jj says:

      Actually Spain is fourth tourism destination – it France, then US, the China, then Spain.

      Stockholm airport at 21M passengers a year, Sweden population 9.5M
      Riga airport has 5M passengers a year, Latvian population 2M

      Not so big a different really.

      Thumb up 0 Thumb down 0

  3. Inna says:

    Ass hole. I regular pay my fee, witch is illegal. Give me back my money !!!

    Thumb up 0 Thumb down 0

Terrorists in Barcelona were planning three explosions

Terrorists, who performed two attacks in Catalonia last week, were initially planning to blow up three shuttle buses in crowded areas in Barcelona, as reported by El Espano.

Lawyer: Maxima wants to earn by reducing compensations for the tragedy

Maxima Latvija and Zolitude 21.11 have reached an agreement on payment of EUR 900,000 to support victims of Zolitude tragedy – EUR 5,000 to EUR 75,000 to each person, as reported by Maxima Latvija.

Producer prices in industry in Latvia grew 0.4% in July

Compared to June, the level of producer prices in Latvian industry rose by 0.4 % in July 2017. The prices of products sold on the domestic market increased by 0.5 %, whereas the prices of exported products grew by 0.3 %.

Enefit: Latvia reduces electricity price difference with neighbouring countries

In recent years, Latvia has managed to reduce the electricity price difference with other Baltic neighbouring countries, as reported by Enefit Chairman Janis Bethers.

Farmers Saeima: butter price will not remain high for long

The high price on butter in Latvia will not remain so high for long, said Farmers Saeima Vice-Chairperson Maira Dzelzkaleja-Burmistre in an interview to 900 seconds programme of LNT.

Aseradens elected as chairman of Unity; Krisjanis Karins to lead party’s city council faction

Unity elected Economy Minister Arvils Aseradens as the new chairman of the party. MEP Krisjanis Karins has been elected as the party’s leader in Riga City Council with Santa Zarane as his deputy.

LPS manager: forming the budget, it is important for municipal funding to stay the same

In the formation process of the next year’s state budget, it is necessary to guarantee finances do not reduce for municipalities, said the chairman of Latvian Association of Local and Regional Governments Gints Kaminskis in an interview to Latvijas Radio.

Police to organize inspections in stores; parents asked to watch their children as well

For the new school year, Riga Municipal Police will be performing regular inspections at stores, bars and cafes from 21 August to 31 August, as well as the first days of September, to make sure minors are not sold alcohol and tobacco products, BNN was told by police.

Colder masses of air to enter Latvia this week; more rain expected

This week’s weather in Latvia will be dictated by a cyclone hovering above Northern Europe. Colder masses of air will flow into the country. A lot of rain is expected in Latvia this week, as reported by State Environment, Geology and Meteorology Centre.

Kirsis asks police to assess possible forging of votes at Riga City Council

Riga City Council’s Unity faction chairman Vilnis Kirsis has asked State Police to check if the city council’s electronic voting system was used without another deputy’s knowledge or consent, said the politician.

Expert: attack in Spain shows how terrorists switched to more easily reachable targets

Terrorist attacks that transpired in Spain this week shows how terrorists have switched to more easily reachable targets, where security requirements are not as strict, says Latvian National Defence Academy’s Security and Strategic Research Centre researcher Martins Hirss.

New mandatory tests in schools to be introduced four years from now

In four years’ time – 2021/2022 school year – it is planned to introduce completely new mandatory tests in schools, as reported by State Education Content Centre Director Guntars Catlaks.

Nearly 9,000 children and their parents got homes thanks to state support programme

In the first half-year of 2017, state support helped 1,527 families in Latvia to buy homes. Compared with last year, families’ demand for state support has grown 6%, as reported by Altum finance institute.

Prediction: Aseradens will likely take control over Unity

Economy Minister Arvils Aseradens will become the head of Unity, Betsafe bookmakers predict. The possibility of Aseradens becoming the head of the party is given 45% probability by Betsafe.

Provisional estimate for next year’s fiscal space in Latvia is EUR 60 million

Next year’s fiscal space has been estimated at EUR 60 million, as noted by Finance Minister Dana Reizniece-Ozola, adding that a more precise estimate will be available at the end of August.

Reconstruction of Vilnius airport runway concludes; aircraft return to Vilnius

On Thursday, 17 August, Vilnius airport’s runway was festively opened. This was the most massive reconstruction for the airport in the past 20 years. It was a unique project for Lithuania and all of Europe, airport representatives say.

Islamic State terrorist group takes responsibility for Barcelona attack

The recent terrorist attack in Barcelona, in which a shuttle bus rammed a crowd of people on La Rambla, killing 13 and injuring at least 100, has become this week’s topic.

Weather in Latvia to be warm but rainy on weekends

The sun will appear every now and then between clouds on Friday, 18 August. Still, some rain is expected, especially in the afternoon in Latvia’s eastern regions, where thunderstorms may appear. Rain is expected to reach the capital in the afternoon. Wind will draw in from the south. Air temperature will reach +21° C… +26° C, according to State Environment, Geology and Meteorology Centre.

Latvia’s export growth was moderately rapid in the first six months of 2017

Compared with the same period of 2016, Latvia experienced a moderately rapid export growth in the first six months of 2017, according to data published by Eurostat on Thursday, 17 August.

Latvia’s annual inflation in July was one of the highest in Europe

Inflation indexes in Latvia and the UK both reached 2.6% in July, which is one of the highest indexes in the European Union, according to data published by Eurostat on Thursday, 17 August.

Kirsis withdraws his candidacy in favour of Aseradens

Riga City Council member Vilnis Kirsis has decided to withdraw his candidacy from the race to become chairman of Unity in favour of a different candidate – Economy Minister Arvils Aseradens.

Rinkevics expresses Latvia’s interest in maintaining political consultations with Palestine

On Thursday, 17 August, Latvia’s Foreign Affairs Minister Edgars Rinkevics met with the leader of Palestine’s diplomatic mission in Latvia, ambassador Taissir Al Adjouri, to discuss mutual relations between Latvia and Palestine and the peace process in the Middle East.

Putin grins to the world’s seven billionth baby, Lithuania wary of border incidents

Russian President Vladimir Putin paid a visit this Wednesday to Kaliningrad, the westernmost point of Russia, but the reports about his trip in the Russian enclave and over the border in Lithuania were strikingly different.

Survey: red considered the safest colour for a car

Most Latvian drivers consider red to be the safest colour for a car. The most popular, however, is black, according to results of a survey by Virši-A fuel trader.

airBaltic’s number of carried passengers reaches a record in second consecutive month

Latvian airBaltic airline carried 393,312 passengers in July 2017, which is 21% more than the same period last year. The number of passengers carried by airBaltic remains the highest it has ever been in the airline’s history, BNN was informed by the company.

Newest comments