Competition Council fines Riga Airport

  • 2012-02-21

RIGA - The Competition Council has fined Riga International Airport 50,000 (71,000 euros) for abusing its dominant position and applying considerably lower fees for Irish low-cost carrier Ryanair than the national airline airBaltic.

Competition Council representative Inita Kabanova informed that the airport was fined and obliged to ensure that its fees are reasonable and non-discriminatory. The airport will also have to provide clearly understandable information about its services and their costs.

In comparing the airport's fees applied to both airlines, the Competition Council established that airBaltic paid 82 percent more than Ryanair for similar services. Moreover, the national airline had to pay the airport's administrative costs, increasing the difference even more.

As a result, airBaltic was imposed such fees which covered the airport's expenses and ensured profit, whilst Ryanair fees did not even cover the airport's costs. Thus, by applying discriminatory fees, the airline's actions negatively affected airBaltic competitiveness with Ryanair.

These discriminatory fees were applied from Nov. 1, 2009 to Dec. 31, 2010.