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Monday 26.09.2016 | Name days: Kurts, Knuts, Gundars

Lithuanian court refuses to re-calculate airBaltic’s compensation to flyLAl

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Baltic news, News from Latvia, BNN.LV, BNN-NEWS.COM, BNN-NEWS.RUVilnius Regional Court has refused to carry out a re-calculation of losses Latvia’s national airBaltic airline has to pay to flyLAL-Lithuanian Airlines. The amount airBaltic is obligated to repay is EUR 16,121,000.

The court also refused to clarify its ruling of 27 January.

airBaltic asked the court to reduce the compensation by EUR 9,311,000 – to approximately seven million euro – and clarify if the previous ruling implies that airBaltic’s Vilnius-Brussels route of 2007 had a dominant position.

If the court conclusion implies that airBaltic did not have a dominant position in the aforementioned route, Latvia’s airline asked the court to deduct EUR 6.3 million from the total compensation amount.

airBaltic also asked the court to deduct EUR 859,500 as losses caused to flyLAL on the Vilnius-Brussels route in 2004 and an additional EUR 2.15 million for Vilnius-Copenhagen route. airBaltic claims that an arithmetic error was caused as a result of those tow amounts not being deducted from the main amount.

Vilnius Regional Court, on the other hand, has concluded that airBaltic’s arguments can only be submitted as part of an appeal.

On 27 January, Vilnius Regional Court decided that Latvia’s national airline has to pay EUR 16,121,000 to flyLAL-Lithuanian Airlines for using unfair competition in the aforementioned routes. All charges against Riga International Airport in this case have been lifted by the court.

airBaltic contested this ruling in Lithuanian Court of Appeal.

Initially, flyLAL wished to collect EUR 57,087,000 from both Latvian companies in court.

On 23 October, 2014, the Court of Justice of the European Union affirmed the ruling of the Lithuanian court in relation to the attachment of assets of Riga airport and airBaltic.

On 31 December 2008, Lithuanian Court of Appeal decided to leave the ruling of Vilnius Regional Court in relation to the arrest of properties of Riga airport and airBaltic worth EUR 58 million unchanged. In January 2009, flyLAL applied for insolvency. Unfair competition in the aviation sector was mentioned as one of the main reasons for insolvency.

In May 2013, the Supreme Court turned to the Court of Justice of the European Union in regards to whether or not there are justifiable reasons for Latvia not to recognize the ruling of the Lithuanian Court of Appeal.

Ref: 102.109.109.8489


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