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Baltona’s stores have been closed since 16 February amid a dispute with airport authority PPL |
POLAND. The dispute between travel retailer Baltona and airport authority PPL at Warsaw Frederic Chopin Airport has escalated, with the concessionaire this week releasing a statement in which it accuses PPL of “unreasonable and unlawful” conduct.
As revealed by The Moodie Report, Baltona’s Warsaw Terminal A stores have been closed since 16 February, with PPL claiming the retailer “lost their legal right to conduct activity due to their failure to meet the conditions of contracts concluded with PPL”. PPL spokesman Przemysław Przybylski told The Moodie Report: “According to Polish Customs regulations, the tenant must meet specific terms of conducting activity in the Duty Free Zone, which, in this case, have not been met, resulting in the cancellation of the permit. [Baltona trading entity] BH Travel Retail sp. z o.o. failed to provide required bank guarantees and proof of third-party liability insurance within the deadline specified in the agreement. Furthermore, it failed to make timely payments for the lease of premises at the airport.”
In a statement released this week Baltona said that the termination of its contract was “unreasonable and unlawful”, adding that “the actual cause of such proceedings”¦ is a desire to conceal mistakes made by the current management of PPL in the preparation of the modernisation of the old part of Terminal A”.
The renovation of Terminal A has been planned for some time and is due to begin later this year. Baltona has accused PPL of “negligence” in not allocating new retail space to the operator despite its contracts running until 2015, and has threatened to delay the renovation project through launching legal action against the airport authority – although Baltona’s statement describes this as a “last resort”.
In the statement, PHZ Baltona SA Managing Director Andrzej Uryga said: “We understand the need for the reconstruction of the terminal, but it cannot be done without respect for the law and to the detriment of business partners. As a result of unlawful actions manager Warsaw Airport has also tarnished the reputation of Baltona, both among our clients and customers. This has exposed the company to multi-million dollar losses.”
Baltona has said it is prepared to seek redress through international courts if necessary.
PPL declined to comment on Baltona’s statement, saying: “[PPL is] not bound to PHZ Baltona by any legal relationship and will not comment on the company’s statements regarding the activities of PPL.”
Baltona is majority-owned by Indian company Flemingo Duty Free and is Poland’s largest travel retailer.
