Riga/Vilnius  - Latvia's main airport is giving unfair preference to the nation's flag carrier, hurting a rival Baltic airline, a court in neighbouring Lithuania ruled Tuesday.

At the request of FlyLAL-Lithuanian Airlines, the district court ordered that the assets of Riga International Airport and Latvia's airBaltic, the largest airline in the three Baltic nations, be frozen.

It was not clear how the decision would affect airBaltic, which immediately rejected the ruling as against European Union law.

The Lithuanian airline claims it has lost almost 200 million litas (80 million dollars) due to favorable conditions extended by the Riga airport to airBaltic, allowing the Latvian company to offer lower prices and gain an unfair competitive advantage.

The court's decision is not binding because airBaltic had not had a chance to argue its case in court, chief executive officer and chairman Bertold Flick told journalists in Riga.

Latvia's government owns Riga International and holds a 52.60-per- cent stake in airBaltic. (dpa)