Lufthansa seeks damages for collapsed airport deal

The Prosser suit in Miami may not be the only litigation facing the Government of Belize. The Amandala newspaper is reporting in today’s issue that Lufthansa Consulting, based in Los Angeles with headquarters in Germany, is seeking to enter into trade arbitration through the United Nations. Lufthansa is reportedly seeking damages of thirty-three million U.S. dollars for alleged breaches in an agreement for management of the Philip S.W. Goldson International Airport dating back to the year 2000. According to its website, Lufthansa was supposed to provide a master airport plan, which included an airport facility and an airport business plan. It was later to take over the management of the airport in late 2003. G.O.B. is claiming it ended talks with Lufthansa because they allegedly failed to meet their deadlines. However, Lufthansa counters that G.O.B. did not give the consulting firm time to correct the situation, and instead it entered into a management contract with Belize Airport Concession Company, B.A.C.C., a consortium of both Belizean and international investors. According to the newspaper account, Government officials were served with notice of the arbitration two months ago and Belize has already appointed an arbitrator, Dr. Albert K. Fiadjoe of the University of the West Indies, Cave Hill in Barbados. Lufthansa will have its own arbitrator, and another is to be mutually agreed to by both parties. If this case goes forward, it will be conducted under the United Nations Commission on International Trade Law.