Latvia, Legislation, Lithuania, Transport

In the announcement, the general director of the Lithuanian airline, Gediminas Ziemelis, emphasizes that flyLAL will not back down from its position in Vilnius, and will not invite Lithuanians to use airport ''Riga''. In the spring, the Lithuanian airline intends to unveil new routes and increase the size of its fleet.

''Vilnius, not Riga, will be the transit center of the Baltic region,'' Ziemelis warned.

According to the announcement, Vilnius Regional Court satisfied the request of flyLAL to arrest the assets of the branch in Lithuania of Latvian air company airBaltic and Riga airport because of unfair competition at Riga airport. According to Ziemelis, airBaltic's announced losses in the first half of 2008, as well as the withdrawal of the airline's main partner and shareholder – SAS, from the company has caused doubts regarding the capacity of airBaltic to reimburse the caused damage, therefore the above-mentioned practice was applied.

''It should be noted that the Latvian Competition Council assessed the fact of the privileges applied by Riga international airport to airBaltic as absolutely negative”, said Ziemelis.

“It seems that the most influential Latvian citizen – Minister of Transport and Communication Ainars Slesers, and airBaltic President Bertolt Flick, do not like it when someone objects to their aims – occupation of the Baltic region aviation market by any means,'' said Ziemelis.

As reported, Vilnius Regional Court has decided to arrest the properties of airBaltic and Riga Airport. The court told LETA that its decision was effective also in Latvia. The airline and the airport may appeal the ruling within seven days, but the ruling has not yet been translated and sent to the two entities.

airBaltic Vice-President Janis Vanags reiterated that airBaltic would continue its business in Lithuania, but its development plans for Lithuania would be revised. The airline has not received an official decision regarding the Lithuanian court ruling so far, he said.

flyLAL persuaded the court that airBaltic and Riga airport were trying to destroy the Lithuanian carrier, insisting that the Latvian airline was trying to conquer the Lithuanian market at the expense of Latvian passengers. airBaltic in Lithuania offers lower prices than in Latvia, although airBaltic receives significant tax breaks at Riga airport, flyLAL said.