Air Lituanica has won the arbitration case against Estonian Air

The airline Air Lituanica has won the arbitration case against the Estonian company Estonian Air. The Estonian company will have to pay LTL 3.3 million to the Lithuanian company.

The Arbitration Institute of the Stockholm Chamber of Commerce of Sweden (SCC arbitration) has passed a judgment in the dispute between Air Lituanica and Estonian Air regarding the unilateral termination of the commercial cooperation contract.

On December 4th last year the airline Air Lituanica initiated arbitration proceedings against the company Estonian Air by filing an action with the Stockholm Arbitration Institute. Estonian Air, after unilateral termination of commercial cooperation contract on 28 November 2013, remained indebted to Air Lituanica for the income collected for the already carried passengers and paid deposits. The decision to refer to the Stockholm Arbitration was taken after Estonian Air had failed to repay the accumulated debt to the company Air Lituanica immediately after the termination of the contract, as stated in the terms and conditions of the contract.