flyLAL settles debts with RIX

Oct 27, 2008
TBT Staff in cooperation with BNS

Tensions have flared between the national Lithuanian air carrier and the Riga International Airport.

Martins Langrats, spokesman for the airport, said that the airport received payment from the Lithuanian airline for the services provided to flyLAL this summer. Thus, the airline will be able to perform the suspended flights to Vilnius.

The spokesman for the Rigaairport did not disclose the amount of the debt, as the agreement of the airport with flyLAL is confidential. He added that the debt was considerable.

flyLAL general director Vytautas Kaikaris told the Baltic News Service that the unsettled bills were worth tens of thousands euros.

"The regular payments were delayed slightly, yet not in the amount to delay the takeoff of the aircraft. Riga airport has acted illegally by resorting to the measures inadequate for the situation," Kaikaris said.

Acrimony between airlines airBaltic and flyLAL reached new heights in October as the two companies fought it out in a 199.83 million litas (57.97 million euros) court case over price dumping.

A Lithuanian regional court has frozen some of airBaltic’s property prior to the court battle. flyLAL hopes to claim damages for money they have lost as a result of what they claim are illegal business practices by their rivals.

flyLAL states in its claim that the company suffered almost 40.8 million lats in losses due to the agreement concluded between airBaltic and Riga airport granting privileges to the airline.

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