Arbitrage hearings underway (220 words)

Published: 8/16/2000

It appears from reports, that Vnukovo Airlines (VAL) and East Line Group-controlled Domodedvo Airport have reached an impasse in their relations after disputes concerning debts incurred by the airline. According to reports VAL, who operated from the airport for a year having transferred from Vnukovo Airport because of disagreements over tariffs, has recently returned to Vnukovo having been reportedly thrown out of Domodedovo. According to VAL, 'VAL has lost hope in finding a compromise (with Domodedovo) and the matter has been passed to arbitrage. The decision to stop flying from the airport was based on commercial and marketing considerations'. In answer to the question relating to the reports of four VAL aircraft (two Il-86s and two Tu-154s) being held by Domodedovo for non-payment of debt, VAL would only comment, 'this issue is also being decided by the arbitrage court, and at present there is no conclusion'. East Line are reluctant to discuss the matter other than to state that East Line has been trying to find a compromise and the filing with the arbitrage court did not come from them. According to East Line however, the airline returned to Vnukovo without paying debts owed to the airport and state that the initial developments of the arbitrage hearing will be known within 14 days.

Article ID: 2002