In Brief - 2003-02-20

Iron horse goes online

AS Edelaraudtee (SW Railway) is to offer Internet access on its Tallinn-Tartu express train beginning next month.

"We intend to install GPRS-based data communications in first-class coaches of the Tallinn-Tartu express train," Henn Ruubel, board chairman of the domestic passenger operator, said.

Ruubel was unable to say at what speeds the connection is going to work. "The equipment's been ordered and should arrive any day. The network area's been tested, and if the equipment fits into the network area we'll be able to start offering Internet at the end of February or in early March," he said. (Baltic News Service)

Latvijas Pasts under scrutiny

After Latvia's Transport Minister Roberts Zile decided to cease construction of a massive postal sorting complex for Latvijas Pasts (Latvia Post), CEO Aivars Droiskis has been ordered to carry out an in-house probe into the dubious results of a construction tender.

Droiskis has also been ordered to temporarily dismiss people responsible for the tender and hand in a report within a week. Transport Minister Zile said that company management was responsible for the tender as it approved the results, but it is still too early to say how responsible, as Droiskis may have been mislead with the results.

A committee established by the ministry for assessing the tender has discovered that the tender regulations were illegally altered and legislative regulations were inadequately applied in assessing results of the tender. No further violations will be announced by the ministry yet. (BNS)

Snaige buying back stock

Snaige is planning to earmark a total of 6.6 million litas (1.9 million euros) for the buyback of its shares on the stock exchange, with the price per share ranging from 100 litas to 175 litas.

"The price range would allow us relative freedom, as the situation on the market may take different turns," said Romualdas Raudonis, managing director of Snaige. Currently, the company does not own any shares.

At the going market rate, Snaige would be able to buy 3.65 percent of the shares for 100 litas per share or 4.34 percent of the shares for 175 litas per share.

The board of Snaige expects to secure the shareholders' approval on the buyback of 10 percent of shares at its shareholders' meeting on March 14. (BNS)

Baltika sells more, earns less

The garment maker and retailer Baltika Grupp earned a profit of 6.8 million kroons (440,000 euros) on net sales of 485.4 million kroons in 2002, unaudited figures released on Feb. 14 show.

Profit decreased by 8.9 million kroons, while sales were up by 71 million kroons, or 17 percent compared with the preceding year, Baltika said.

Baltika said the smaller than forecast sales were the result of negative seasonal factors on all of the group's retail markets, repositioning of customer target groups after the adoption of the new retail concept, a downtrend affecting men's classic clothing in Scandinavia, and a more conservative sales policy on the Russian market.

The group's operating profit last year totaled 13.8 million kroons, a drop of 9.3 million kroons from 2001. (BNS)

Domina takes over subsidiary

The international tourist operator Domina World Travel has become the sole owner of Domina Travel Latvia, purchasing 49 percent of the company's shares from a previous owner, the company reported.

Domina Travel Latvia will work as tourism operator and drop its operation of travel agencies. The company intends to sell tours offered by Domina Travel Latvia in over 100 travel agencies across Latvia with which Domina Travel Latvia has closed the appropriate deals.

Domina World Travel, which is associated to Italian businessman Ernesto Preatoni, purchased a controlling stake in the Impro Lidojumi travel agency last year in order to expand operations on the Latvian market, renaming the company later as Domina Travel Latvia.

Domina World Travel, a subsidiary of the international concern Domina Vacanze, launched operations in Estonia in 2001.

Domina Vacanze owns hotels and resorts in a number of countries favored as tourist destinations, including Italy, Kenya, Egypt, Croatia, as well as hotels in Vilnius and Tallinn. (BNS)

Lithuanian Airlines rents Boeings

Lietuvos Avialinijos (Lithuanian Airlines, or LAL), which is in the process of being privatized, signed this week an agreement to lease two Boeing 737-500 jets from the U.S.-based International Lease Finance Corporation for a period of five years.

The newer generation Boeing 737-500 jets, manufactured in 1996, will replace two Boeing 737-300 aircraft operated by LAL under a lease agreement with ILFC, which is about to expire.

CEO Vidas Zvinys said the aircraft were being prepared to meet LAL's requirements. The first aircraft is to be delivered to Vilnius on April 27 and the second one is to arrive on May 12.

The monthly lease price will be around $120,000 to $130,000 per aircraft. LAL currently pays $250,000 for leasing one Boeing and $177,000 for the other monthly.

LAL also has three Saab 2000 aircraft on lease from a subsidiary of Sweden's Saab Group and owns two Boeing 737-200 aircraft.

According to information that has not been officially confirmed, Scandinavian Airlines System is the only contender to buy a state-owned stake in LAL. The government wants to sell a 34 percent stake in July to August of this year. (BNS)