newstodate.aero
Feb 28, 2012 (newstodate): Earlier this month, Latvia's Competition Council ruled that Riga Airport has unjustly favored Ryanair in applying substantially lower rates for airport services than charged on airBaltic.
Consequently, the airport was fined 50,000 USD by the Council, but it remains to be seen what other effects the ruling will have on Latvia's aviation scene.
For one thing, it must be expected that the airport will now make its rates schemes and structures transparent to ensure that all airlines operating at the airport are treated equally and pay for services according to one unified set of rates schemes.
Compared to charges on Ryanair, airBaltic has paid about 82 percent more for equivalent services, and the carrier has also been charged for additional administrative costs that Ryanair did not pay.
airBaltic at one point refused to pay what it claimed were unfair charges and withheld the payments. This caused the airport to threaten a stop to handling of the airline, and airBaltic was forced to pay up its debts, turning to pre-payment of charges instead.
The carrier filed the suit against the airport in 2010, claiming a loss at 7 mio LVL due to being over-charged by the airport.
In response to questions about its action in the wake of the recent ruling by the Competition Council, the Baltic carrier currently abstains from commenting upon the issue.
-As we are looking into the future and about to disclose our new business plan March 7, may I politely decline the opportunity to elaborate on this issue and remain with what we have previously said that competition should be fair, responds Janis Vanags, airBaltic VP Corporate Communications.
Consequently, the airport was fined 50,000 USD by the Council, but it remains to be seen what other effects the ruling will have on Latvia's aviation scene.
For one thing, it must be expected that the airport will now make its rates schemes and structures transparent to ensure that all airlines operating at the airport are treated equally and pay for services according to one unified set of rates schemes.
Compared to charges on Ryanair, airBaltic has paid about 82 percent more for equivalent services, and the carrier has also been charged for additional administrative costs that Ryanair did not pay.
airBaltic at one point refused to pay what it claimed were unfair charges and withheld the payments. This caused the airport to threaten a stop to handling of the airline, and airBaltic was forced to pay up its debts, turning to pre-payment of charges instead.
The carrier filed the suit against the airport in 2010, claiming a loss at 7 mio LVL due to being over-charged by the airport.
In response to questions about its action in the wake of the recent ruling by the Competition Council, the Baltic carrier currently abstains from commenting upon the issue.
-As we are looking into the future and about to disclose our new business plan March 7, may I politely decline the opportunity to elaborate on this issue and remain with what we have previously said that competition should be fair, responds Janis Vanags, airBaltic VP Corporate Communications.