Lux Express Latvia” takes legal action against the Latvian state – Baltic News Network

Lux Express Latvia filed a claim with the Administrative District Court on May 11, 2026, seeking to compel the Latvian state to compensate the company for the costs of providing state-mandated fare discounts on intercity commercial routes. The legal action is directed at the Ministry of Transport of Latvia and the state-owned Road Transport Administration (ATD).

The dispute centers on requirements established under the Public Transport Services Law and Cabinet regulations, which mandate that fare discounts be granted to specific passenger groups. These eligible groups include holders of the 3+ Family Card for members of large families, orphans, people with disabilities and politically repressed persons.

Financial Impact and Passenger Volume

According to the company, the unpaid compensation for these services has already exceeded 500,000 euros. Lux Express Latvia stated that it has conscientiously provided these fare discounts for more than two years and continues to do so despite the lack of reimbursement from the state.

Earlier reporting from June 27, 2025, indicated that the company had provided free transport for more than 69,000 passengers who benefited from these state-subsidized fare discounts since the launch of regional commercial routes.

Legal Basis and Regulatory Conflict

The claim is based on European Union regulations and a ruling by the Court of Justice of the European Union. These legal frameworks mandate that member states must compensate public service providers for losses incurred when enforcing state-mandated fare concessions.

Despite these regulations, the Road Transport Administration previously refused to reimburse the losses, citing a lack of a legal framework for calculating and disbursing the payments. This refusal occurred even as communications indicated that the Minister of Transport, Atis Švinka, supported the resolution of the compensation issue.

Failed Negotiations and Bureaucratic Hurdles

Lux Express Latvia representatives stated that they exhausted all avenues for negotiation before pursuing litigation. Aldis Ķibēns, a board member of Lux Express Latvia, noted that more than a year of discussions with the Road Transport Administration and the Ministry of Transport failed to produce results.

We fully support the availability of state-mandated fare discounts, but more than a year of discussions with the Ministry of Transport and the ATD regarding compensation payments has produced no results.

Aldis Ķibēns, board member of Lux Express Latvia

Ķibēns described the compensation process as unjustifiably bureaucratic, claiming that new requirements were constantly introduced. He alleged that while the Ministry of Transport had the opportunity to decide on the compensation payments, it instead returned the matter to the Road Transport Administration.

Although the state has imposed an obligation on us to provide fare discounts to specific passenger groups, the compensation process continues to be unjustifiably bureaucratic, with new requirements constantly being introduced. The Ministry of Transport had the opportunity to decide on compensation payments, but returned the matter back to the ATD. The actions of the Ministry and the ATD in resolving this issue show that the state cannot be regarded as a reliable and trustworthy cooperation partner.

Aldis Ķibēns, board member of Lux Express Latvia

The company’s decision to move to the Administrative District Court follows a period of consideration that began in mid-2025, when the company first signaled it was weighing legal action after the Road Transport Administration’s repeated refusals to reimburse the losses caused by the fare concessions.