Our team represented the bankrupt Lithuanian national air carriage company flyLAL in a dispute where the company was claiming for damages (over 57.4 million EUR) caused by “Air Baltic Corporation” and Riga International Airport.
The factual basis of the claim is that “Air Baltic Corporation” had entered into anticompetitive agreements with Riga International Airport, as a consequence receiving enormous rebates which enabled “Air Baltic Corporation” to engage in predatory pricing and anticompetitive strategies against flyLAL. As a result, the air carriage company flyLAL had to withdraw from the markets in question.
Vilnius regional court upheld flyLAL’s claim and ordered the respondent “Air Baltic Corporation” to pay flyLAL 16,121,094 EUR in damages and procedural interest. The court issued a decision of more than 90 pages, underlining the complexity of the case, specifically the first of its kind violation of TFEU articles 101 and 102 and the Lithuania’s competition law by the respondents. The case has the potential of setting precedents in the jurisprudence related to various perspectives of private competition enforcement.
The Court of appeal has issued a procedural decision to refer the case to the Court of Justice of the European Union in order to answer the question of whether Lithuanian Courts have jurisdiction (under Brussels I Regulation) in the case at hand.