Airport, Latvia, Transport

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Riga Airport board member: airBaltic is in financial trouble

Alla Petrova, BC, Riga, 11.03.2011.Print version
National airline airBaltic appears to be experiencing financial problems, Riga International Airport board member Andis Damlics said in an interview with Latvian State Television's program "100.pants" (100th Article) yesterday.

According to Damlics, this is proven by the fact that the airline is not paying its bills on time. At the moment, airBaltic owes the airport approximately LVL 7 million to LVL 8 million, writes LETA.


"The debt is no longer increasing now, the airline is trying to pay for the airport's services in advance, although these payments are not always made on time. They are experiencing financial problems, we can see that," said Damlics, adding that the airline was also having trouble with paying utility and rent bills.


Damlics also said though that the airport continued talks on a settlement with airBaltic, being aware that without the airline, which accounts for about 66 percent of the airport's passenger turnover, there will be no work for the airport.


Riga Regional Court previously decided to put off a review of airBaltic claim against the airport until July 19, because both sides said that they were hoping for an out-of-court settlement.


The talks between airBaltic and the airport continue.


As reported, last past summer Riga International Airport demanded airBaltic to pay a debt of almost LVL 3.4 million, whereas the airline filed an almost LVL 6 million lawsuit against the airport over unfair competition practices.


In mid-August, the airport and airBaltic announced signing a memorandum of agreement on stopping legal proceedings each other and on continuing cooperation.

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