Estonian Air has informed Air Lituanica of the termination of its Flight Services Agreement and Commercial Agreement as of November 28th.
“Air Lituanica has repeatedly and on an ongoing basis failed to meet its payment obligations towards Estonian Air as set forth in our agreements,” explained Jan Palmér, the CEO of Estonian Air. “Estonian Air has been forced to terminate the contracts due to these breaches by Air Lituanica, breaches that have not been cured in spite of continuous talks and settlement proposals by Estonian Air.”
For now, Estonian Air will continue flights on the Vilnius-Amsterdam route according to the current flight schedule. Estonian Air will operate flights on Vilnius-Berlin route with no changes in the flight schedule up till Wednesday, 4 December 2013.
Passengers holding Air Lituanica tickets (with number 431-XXXXXXX) for Estonian Air flights will be accepted on those flights only on 28 and 29 November. Starting from 30 November, only Estonian Air tickets (with number 960 – XXXXXXXXX) and partner airline tickets, such as KLM, Delta, Hahn Air, will be accepted on Estonian Air flights.
According to Mr. Palmér, it has been a very hard decision for Estonian Air, but unfortunately necessary. “Estonian Air has no authority to continue to support Air Lituanica beyond our contractual terms. Our primary task is to serve our customers and therefore we will do everything to fulfil our obligations to them.”
According to the Flight Services Agreement (FSA) terminated as of Wednesday, 27th of November, Estonian Air was to provide flight services to Air Lituanica using one 76-seater Embraer E170 jet until the end of 2015. The aircraft was dedicated for flights from Vilnius to Amsterdam and Berlin.
According to the Commercial Agreement, Estonian Air had provided a number of services to Air Lituanica such as access to Estonian Air’s sales and distribution channels and systems, sales of tickets and revenue management among others.