The Estonian airline Estonian Air has informed the airline Air Lituanica, which is controlled by the Vilnius municipal government, that it is pulling out of its flight service contract and commercial contract with the company.
Estonian Air stated that the company was forced to terminate the contracts due to repeated violations by Air Lituanica that have not been dealt with despite ongoing negotiations and settlement offers submitted by Estonian Air.
Meanwhile, Vilnius Mayor Artūras Zuokas and Air Lituanica contend that the agreements between Air Lituanica and Estonian Air were terminated unilaterally and are threatening to take the Estonians, who allegedly owe the Lithuanian company 5.7 million LTL, to international arbitration.
It is clear that nothing is clear.
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