Airport, Construction, Financial Services, Latvia, Transport

In his view, the optimal solution to the dispute is to reach an agreement, as non-payment and legal proceedings is in no-one's interests, informs LETA.

As reported, Riga Regional Court recently opened civil proceedings concerning Riga International Airport's claim for debt payments of more than LVL 2.5 million from national airline airBaltic.

"The fact that airBaltic have not paid the airport for services rendered can definitely have an effect on the airport's development plans with regards to the building of a new terminal. The conclusion of an agreement on a project as serious as the building of a new terminal is not possible at the moment, and there is just one sole reason for this – the debt owed by airBaltic," explained Kuzulis.

A land lease and cooperation agreement for the new terminal project has apparently already been concluded and signed by airBaltic; however, the agreement contains a clause regarding the clearing of debts, and with the airline's failure to do so, the agreement no longer possesses any legal effect.

Kuzulis explained that with this, the airline has no grounds for submitting the agreement to the Competition Council, whose approval is necessary for the agreement to come into force.

"We have a relationship with this client, and if the client has not paid for some time in the past and continues not to pay, despite court proceedings being opened, then we cannot sign any agreement with this client. Moreover, no agreement has been reached for clearing this debt. If any of the airport's clients, however small, is in debt to the airport, then the airport will not enter into any new agreements with this client, let alone speak about massive investments in the building of a new terminal," indicated the airport representative.

The airport does not believe it could lose the case regarding the LVL 2.5 million in debt owed by airBaltic, as the situation is clear and simple – "there is an agreement signed by both parties, the work has been done from the airport's side, and the invoices have not been paid".