Latviski English По-русски
Saturday 21.07.2018 | Name days: Meldra, Meldris, Melisa

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.

  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.

    • jj says:

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

    • 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.

  3. Inna says:

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

SRS: cash register reform still stagnates, but has become much faster than it was last year

The cash registers reform continues stagnating. However, it has become much faster than it was a year ago, as reported by State Revenue Service.

Specialists to search for solutions to topical environmental problems in Ventspils

On Friday, 20 July, a meeting was held between Ventspils Commercial Port representatives and specialists from State Environment Service.

Children with functional disorders to receive services financed by EU funds

Child invalids will have access to social services intended to improve their social skills and mobility. More than EUR 4.2 million has been allocated for this goal from the European Social Fund, as confirmed by Latvia’s Central Financing and Contracting Agency.

Producer price level in industry up 4.3% in Latvia

Compared to June 2017, the average level of producer prices in Latvian industry increased by 4.3 % in June 2018. Prices of products sold on the domestic market rose by 4.8 % and those of exported products by 3.7 %.

Total tax debts in Latvia in July – 1.212 billion euros

At the beginning of July total tax debts in Latvia, including outstanding debts, halted debts and debts applied with repayment term extensions, accounted for EUR 1.212 billion, which is 0.8% less than a month prior, according to data from the State Revenue Service.

Survey: every third Latvian resident has received illegal loan offers

Nearly every third resident in Latvia or 31% of respondents admit having received offers to use illegal loan services, as concluded in a survey performed by Latvian Alternative Financial Services Association and SKDS.

Libya opposed to EU's idea to establish migrant centres in North Africa

Libya is against the solution of the European Union to set up migrant centres in the North African country as a means to keep migrants from arriving in the bloc and Libya would not be convinced with financial support, its Prime Minister Fayez al-Sarraj has noted.

Arrest warrant on Catalan ex-President cancelled by Spain

The Supreme Court of Spain cancelled a European arrest warrant for former Catalan regional leader Carles Puigdemont, as Germany refused to extradite him to face accusations of rebellion for declaring the independence of Spain's region, Catalonia in 2017.

Latvian government plans to allow handing expired food to charity

Latvia’s Agriculture Ministry has prepared amendments to the Law on the Supervision of the Handling of Food that provide permission to hand over certain types of food products to charity after the end of their expiry date.

Estonian industrial producer prices up 2.9% since June 2017

Estonian industrial producer price index has risen by 2.9% between June 2017 and the first summer month this year, resulting in an increase of export prices as well, Estonian statisticians have estimated.

Putin urges NATO to quit «irresponsibly» developing ties with Ukraine, Georgia

Russia's President Vladimir Putin cautioned NATO against developing deeper relations with Ukraine and Georgia, evaluating such a policy was irresponsible and would have consequences for the military alliance.

Latvian parliament not in a hurry to support president Vejonis for a second term

Political parties represented in the Saeima are not eager to support President Raimonds Vējonis for his remainder for a second term.

Weather in Latvia will remain warm and even hot at times

Weather in Latvia in the nearest couple of days will be dictated by a cyclone. Because of that the sky will be partially covered by clouds; thunderstorms are also expected, as reported by State Environment, Geology and Meteorology Centre.

Hungary sued in EU Court for criminalising help to illegal immigrants

The European Union's executive body has stated that a law in Hungary that criminalises support for illegal immigrants is in breach with EU law and Hungary has now been referred to the European Court of Justice for the alleged non-compliance.

Estonians buy alcohol in Latvia; country loses EUR 20 million in six months

Latvian stores located close to the Latvian-Estonian border have sold 1.6 million litres of strong alcoholic drinks in the first half year of 2019. This means Estonia has lost more than EUR 20 million in taxes, according to data from Association of Estonian Alcohol Producers and Importers.

Lithuania’s election watchdog slams ruling LFGU over popular TV series

Political messages can be channeled in various ways and the ruling now Lithuanian party, LFGU has chosen a very delicate way of the communications – through a TV series featuring the beauty and the ambiance of Naisiai, a picturesque settlement in Siauliai district.

Association: around 3,3000 people know of their HIV infection but receive no treatment

HIV remains a serious problem in Latvia – around 3,300 people are aware of their status but receive no treatment and continue spreading the infection. Because of that, it is necessary to act quickly for Latvia to lose its status as HIV kingdom and limit the spread of the infection, says Baltic HIV Association, informing decision-makers and responsible officials in institutions and hospitals about the HIV/AIDS situation.

Driver shortage may force reduction of international road haulage volumes

Latvia’s road haulage companies have started experiencing shortage of drivers. On top of that, if employment conditions for residents of non-EU member states do not change, it may be necessary to reduce the volume of road haulage volumes, says Latvijas auto president Valdis Trēziņš.

Lattelecom’s turnover up 9% in first half-year of 2018

Lattelecom Group’s turnover reached EUR 98.7 million in the first half-year of 2018, growing by 9% in comparison with the same period of 2017, according to unaudited financial results.

1,140 fewer births registered in Latvia in 2017

Since 2016 the number of births in Latvia is declining again. Compared to 2016, a total of 1,140 births fewer were registered in 2017. Also, the provisional number of births registered over the first six months of 2018 (9,664 children) is by 664 children smaller than that registered over the respective period of 2017.

Citadele Bank decides to reform Lithuanian subsidiary as a branch office

Citadele Bank has decided to reform its Lithuanian subsidiary as a branch office, as confirmed in the statement the bank submitted to Nasdaq Riga.

Russian pension age hike discussed amid protest outside Duma

As the Russian paliament votes on the proposal to gradually increase he pension age to 65 for men and 63 for women, some 200 people were seen protesting against the reform in Moscow.

Corruption watchdog chief says bureau has done no illegal actions

After going through Corruption Prevention and Combating Bureau’s past investigative activities, the bureau’s chief – Jēkabs Straume – found it confusing that officers often took no appropriate actions after acquiring evidence or receiving indications regarding necessary steps.

Illegal border crossings to Estonia on rise after Russia World Cup

Football fans with temporary residency permits of the Russia World Cup, or fan Ids, are trying to illegally cross the Russian border with Estonia, a member of the European Union.

Estonian 13-year-old lethally overdoses fentanyl

Estonian prosecutors have accused a 15-year old of negligent homicide after a girl, 13, passed away from fentanyl overdose.