Airport fined for unfair practices

  • 2010-04-05
  • TBT Staff

The Vilnius International Airport will have to pay a fine for unfair business practices in the creation of a fuel distribution company.

VILNIUS -- The Vilnius International Airport has been issued a fine after the Competition Court found it guilty of having been involved in unfair business practices.

The court said the airport misused its dominant position in the market by creating and operating a fuel distribution company that all visiting planes would have to work with. This drove prices for fuel upward and discouraged flight operators from working in the country.

The fuel company, called Naftelf, was able to dictate the market prices without other companies to compete and keep prices fair. The airport will have to pay a fine of about 50,000 euros.

"It is important that the court endorsed the findings of the competition council, that the existence of a new entrant would have to create more competition and therefore reduce fuel costs for airlines,” Elonas Satas of the competition council was quoted as saying by alfa.lt.

Despite its position as European Capital of Culture last year, Vilnius struggled to attract flights to the city to fill the gap left by the collapse of national airline FlyLAL.