newstodate.aero
Oct 1, 2008 (newstodate): A virtual air war has broken out between EU member states Latvia and Lithuania in the Baltic region.
The airlines of the two neighbouring states are competing over basically the same markets, and since 2004 Latvia's airBaltic has successfully established a hub in Lithuania in an effort to carve a growing slice of Lithuania's air travel market, offering direct flights to a number of European destinations alongside its attraction of passengers from Lithuania to Riga Airport in Latvia.
flyLAL, however, claims that airBaltic is being indirectly subsidised by the Latvian state in the form of preferential treatment at Latvia's Riga Airport, enabling the Latvian carrier to build up a dominating role in the Baltic region.
-We are not talking about air rates and low-fare traffic. We are talking about what we consider unfair competition, and we have repeatedly appproached both airBaltic and the Latvian Minister of Transportation to discuss the issues, says Gediminas Ziemelis, chairman of flyLAL Group Board.
-As we have had no response to these approaches, we have calculated our accumulated losses from this unfair competitive situation, and taken the claim to court in an effort to secure our position in an eventual lawsuit, says Mr Ziemelis.
Refuting the claim, the Latvian carrier airBaltic has issued a strong statement against the actions of flyLAL.
-FlyLAL apparently believes that it is normal business to attack the reputation of airBaltic and the Riga International Airport, says the company.
-Instead, the company has blackened its own reputation and that of Lithuania, and this may have a seriously deleterious effect on the investment environment in that country.
-The point is that the situation with the aviation market in Lithuania is worsening, and it is a better option for residents of our neighbouring country to depart from the Riga International Airport.
The airlines of the two neighbouring states are competing over basically the same markets, and since 2004 Latvia's airBaltic has successfully established a hub in Lithuania in an effort to carve a growing slice of Lithuania's air travel market, offering direct flights to a number of European destinations alongside its attraction of passengers from Lithuania to Riga Airport in Latvia.
flyLAL, however, claims that airBaltic is being indirectly subsidised by the Latvian state in the form of preferential treatment at Latvia's Riga Airport, enabling the Latvian carrier to build up a dominating role in the Baltic region.
-We are not talking about air rates and low-fare traffic. We are talking about what we consider unfair competition, and we have repeatedly appproached both airBaltic and the Latvian Minister of Transportation to discuss the issues, says Gediminas Ziemelis, chairman of flyLAL Group Board.
-As we have had no response to these approaches, we have calculated our accumulated losses from this unfair competitive situation, and taken the claim to court in an effort to secure our position in an eventual lawsuit, says Mr Ziemelis.
Refuting the claim, the Latvian carrier airBaltic has issued a strong statement against the actions of flyLAL.
-FlyLAL apparently believes that it is normal business to attack the reputation of airBaltic and the Riga International Airport, says the company.
-Instead, the company has blackened its own reputation and that of Lithuania, and this may have a seriously deleterious effect on the investment environment in that country.
-The point is that the situation with the aviation market in Lithuania is worsening, and it is a better option for residents of our neighbouring country to depart from the Riga International Airport.