The European Court of Justice makes a preliminary decision in flyLAL case

Motieka & Audzevičius, together with Skrastins & Dzenis, has represented the bankrupt Lithuanian national air carriage company flyLAL before the European Court of Justice, concerning a request for the recognition and enforcement of a judgment of the Lithuanian court of appeal ordering interim measures in Latvia.

Despite the fact that the Air Baltic Corporation and Riga International Airport had used every possible means to aggravate the recognition and enforcement proceedings before the Latvian courts, on 23 October 2014 the European Court of Justice stated that there were no obstacles for further civil proceedings in Lithuania and the Lithuanian court’s rulings on the application of interim measures must be recognized and enforced in Latvia.

The preliminary ruling of the European Court of Justice allowed seizure of the real estate and other assets and property rights of the Air Baltic Corporation and Riga International Airport in the amount approaching 58 million euros.

The latter decision plays an instrumental role in ensuring the implementation of the future Lithuanian court’s decision in which the bankrupt air carriage company flyLAL is claiming a huge amount of damages caused by the Air Baltic Corporation and Riga International Airport. The basis of the claim is that the Air Baltic Corporation entered into anticompetitive agreements with Riga International Airport which allowed the receiving of considerable rebates and essentially enabled Air Baltic Corporation to engage in predatory pricing. As a result, the bankrupt air carriage company flyLAL had to withdraw from the market.

Experience