flyLAL settles debts with RIX

  • 2008-10-27
  • TBT Staff in cooperation with BNS

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

RIGA 's flyLAL, the Lithuaniannational air carrier, has settled its past debt with the Riga International Airport.

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

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

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

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

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

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

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