newstodate.aero
Nov 29, 2013 (newstodate): As might be expected, the rift between Estonian Air and Air Lituanica and their mutual economic claims does not bode well for their future dialogue.
Estonian Air thus refutes yesterday's comments by Air Lituanica explaining their stand and carry a claim of 5.7 million litas for already transported passengers and deposits paid.
-Air Lituanica's claim is inaccurate, and they tell only one part of the story without opening the very important part of it. The sum they are talking about is the revenue from passengers not yet flown, says Ilona Eskelinen, Estonian Air.
-Estonian Air did sign two agreements with Air Lituancia, and there were considerable obligations on both sides.
-According to the Flight Services Agreement terminated as of November 27, Estonian Air was to provide flight services to Air Lituanica for flights from Vilnius to Amsterdam and Berlin. To avoid financial risks, Air Lituanica was required to pay Estonian Air for flight services like use and maintenance of the aircraft monthly in advance.
-According to the Commercial Agreement, Estonian Air provided a number of services to Air Lituanica such as access to Estonian Air's sales and distribution channels and systems, ticket sales and revenue management.
-Air Lituanica thus had to pay to Estonian Air for the services on the basis of two agreements.
-As Air Lituanica was using Estonian Air's commercial systems, Estonian Air was required to pay Air Lituanica the flown revenue from passengers. This obligation foresaw payment after a buffer period to ensure the monies had reached Estonian Air before payment.
-On November 25, Air Lituanica did not meet its deadlines for payment for December's flight services. We cannot disclose the specific figure, but do again stress that Air Lituanica was repeatedly in breach of agreements, such as payments on time, since the start of the agreements.
-Estonian Air has no authority to continue to support Air Lituanica beyond our contractual terms, especially given the increasing risks of the low winter season.
-We as an airline and operator of the route have to serve our customers/ticket holders and therefore we will do everything to fulfil our obligations to them. So, we are forced to resort the security deposit for partial payment to meet our obligations to customers, says Ms Eskelinen.
Estonian Air thus refutes yesterday's comments by Air Lituanica explaining their stand and carry a claim of 5.7 million litas for already transported passengers and deposits paid.
-Air Lituanica's claim is inaccurate, and they tell only one part of the story without opening the very important part of it. The sum they are talking about is the revenue from passengers not yet flown, says Ilona Eskelinen, Estonian Air.
-Estonian Air did sign two agreements with Air Lituancia, and there were considerable obligations on both sides.
-According to the Flight Services Agreement terminated as of November 27, Estonian Air was to provide flight services to Air Lituanica for flights from Vilnius to Amsterdam and Berlin. To avoid financial risks, Air Lituanica was required to pay Estonian Air for flight services like use and maintenance of the aircraft monthly in advance.
-According to the Commercial Agreement, Estonian Air provided a number of services to Air Lituanica such as access to Estonian Air's sales and distribution channels and systems, ticket sales and revenue management.
-Air Lituanica thus had to pay to Estonian Air for the services on the basis of two agreements.
-As Air Lituanica was using Estonian Air's commercial systems, Estonian Air was required to pay Air Lituanica the flown revenue from passengers. This obligation foresaw payment after a buffer period to ensure the monies had reached Estonian Air before payment.
-On November 25, Air Lituanica did not meet its deadlines for payment for December's flight services. We cannot disclose the specific figure, but do again stress that Air Lituanica was repeatedly in breach of agreements, such as payments on time, since the start of the agreements.
-Estonian Air has no authority to continue to support Air Lituanica beyond our contractual terms, especially given the increasing risks of the low winter season.
-We as an airline and operator of the route have to serve our customers/ticket holders and therefore we will do everything to fulfil our obligations to them. So, we are forced to resort the security deposit for partial payment to meet our obligations to customers, says Ms Eskelinen.