Sardana Group to fight Vienna Airport contract terminations

Sardana Group had contracts for a series of units at Vienna Airport’s Skylink extension, which were cancelled by the airport, but the retailer vows to fight on (Photo: Flughafen Wien AG/Roman Boensch)


AUSTRIA. Sardana Group has said it will vigorously defend itself against Vienna Airport’s move to terminate a series of contracts with its subsidiaries. As reported on Monday, Vienna Airport (Flughafen Wien) cancelled its contracts with Sardana Group companies Artifacts, Saveria and Striberny.

The airport said the move was a result of “significant payment arrears, the failure to fully stock individual shops and unfinished facilities in the new Terminal Check-in 3 [the Skylink terminal extension -Ed]”.

But this morning the Sardana Group hit back, claiming that the terminations were “probably the lowest point which Vienna Airport has reached after 30 years of our dedicated service and presence” at the location.

CEO Rakesh Sardana told The Moodie Report the allegations by the airport “are not only inaccurate and false but also grossly misleading”. The company cited a previous case in 2003, when it said the airport terminated its lease prematurely “on politically motivated and baseless grounds”. Then, said Sardana, “we fought the matter in courts until Vienna Airport relented and restored our agreements and our honour to our fullest satisfaction, including damages.”

Sardana added: “This time it will be no exception and we will wage a vigorous legal defence and shall ultimately prevail.”

Sardana said that the move against him comes amid “criminal investigations” against former board members of Vienna Airport. He cited case number GZ: B5/39993/2009. The Moodie Report is awaiting Vienna Airport comment on these claims.

Sardana said that in light of the “criminal investigations”, the airport aimed “to deflect and divert attention by painting the victim as the perpetrator”.

He concluded: “We are fortunate to enjoy the trust and confidence of our partners, suppliers and of our 300 strong team members, which matters to us the most. The operations for all the locations will continue uninterrupted and the shops will remain with us. For us, it is business as usual.”

UPDATE
Vienna Airport reacted to Sardana’s claims, following a request by The Moodie Report. It noted that “it is true and public that there are investigations against former board members because of issues with the Sardana Group” – which are widely reported in the Austrian media.

But it added: “The actions taken by Vienna Airport last week are not related to the issues mentioned [by Sardana]. The reasons for the contract terminations are only a consequence of significant payment arrears, the failure to fully stock individual shops and unfinished facilities in the new terminal.”

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