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David and Goliath or Laurel and Hardy?
airBaltic and flyLAL in the court

We have already witnessed exchange of arguments, accusations in media and a war on economic indicators between two major airlines in Pribaltika: the Latvian airBaltic and the Lithuanian flyLAL. The legal side of the conflict remains unclear, but its escalation is a precedent in the region.

What makes matters more complicated is the fact that we are witnessing a clash of interests between two different entities. AirBaltic is a stock company; its major shareholders are the Latvian state, with 52.6% of shares, and SAS AB, with 47.2% of shares. In 2007, airBaltic carried over 2 million passengers. FlyLAL, a 100% private owned company (owned inter alia by companies: ŽIA Valda, Sanitex and Indeco), carries a 35% share of the passengers travelling via Vilnius Airport. The biggest Lithuanian airline is aspiring to become the most popular and fast developing carrier in the region of Pribaltika. The obstacles on its way are to be airBaltic and Riga International Airport, accused by flyLAL of unfair competition. [read more]