Brands, Latvia, Legislation, Transport

The Baltijas aviacijas sistemas consolidated annual report for 2009 shows not only huge loans taken on in order to provide funds for Flick's acquisition of airBaltic shares, but also the intention to acquire income from the airline for the use of the airBaltic brand, writes LETA.

As reported, the airline sold its brand to Baltijas aviacijas sistemas for LVL 9.136 million last December. Baltijas aviacijas sistemas controls 47.2 percent of airBaltic, and acquired the trade marks airBaltic, "airBaltic.com", "airBaltic Travel.com", "airBaltic Hotels", "Baltic Miles", and "Baltic Taxi" through the deal.

However, Transport Minister Kaspars Gerhards (TB/LNNK) and Flick reached agreement last Thursday that the brand should be returned to the airline, as all aspects of the deal had not been properly evaluated before it was concluded.

The annual report of airBaltic indicates that the company was paying a variable monthly license fee for the use of its airBaltic and "airBaltic.com" trademarks; with this monthly fee reaching LVL 95,000 and more, Baltijas aviacijas sistemas would have received at least LVL 1.14 million a year from the deal. It is therefore possible that since the start of 2010, the airline has already made payments of LVL 700,000 for the brand, and that this money will now have to be returned.