RIGA — Latvian national airline airBaltic and Riga International Airport, both state-owned entities, agreed Tuesday to drop their lawsuits against each other and proceed cooperatively.

Despite both being under the supervision of the Ministry of Transport, the airline and airport got in a nasty dispute about ground handling fees and tariffs. In July the airBaltic sued the airport for 6 million lats (€8.6 million) for giving budget carrier Ryanair lower tariff rates. Riga airport subsequently filed a countersuit alleging airBaltic had not paid 2.5 million lats (€3.5 million) in charges.

Neither the airline nor the airport are disclosing the terms of the settlement.

The agreement comes after transport minister Kaspars Gerhards, exasperated with the dispute he’d been very critical of since the initial lawsuit was filed, gave both parties a deadline of Monday to come to an agreement.

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