Airport, Latvia, Transport

This decision was made because airBaltic has refused the settlement offered by the airport, writes LETA.

airBaltic must make the advance payment by 12 noon Friday; if it fails to do so, the airport will cancel all services for the airline as of 4 p.m. Friday.

Riga International Airport will also file suit again in a court of law concerning airBaltic's debt, which is now over LVL 5 million.

"This warning about setting advance payment for services rendered airBaltic is without precedent, and it is primarily due to the airline's dodging payment and its negative credit history vis-a-vis Riga airport," the airport's representatives explain, adding that according to the mutual contracts, the airport has the right to break them without prior warning if payments are arrears longer than two months.

In reaction, airBaltic VP Janis Vanags explained that it was airBaltic actually that had recommended the airport switch to advance payment, at the same time hiring an independent auditing firm that would objectively evaluate rates so that they would be the same for all carriers, nullifying any discriminatory competition guidelines.

Vanags continued by saying that a low-cost passenger is airBaltic's priority, and it is unacceptable that the airline, and therefore passengers, pay a much higher fee for the airport's services than "some foreign company."

The Transport Ministry told Nozare.lv that it is informed about Riga airport's decision on advance payment for airBaltic, and emphasizes that the airport was forced to make the move as it had received airBaltic's rejection on settlement.

If a settlement with airBaltic is not possible, the only solution in the conflict is a lawsuit, the ministry stated. It added that evidently airBaltic's board had not made every effort to settle the dispute out of court.