Judgment_paragraph 59 · AB ‘flyLAL-Lithunian Airlines’ v Starptautiskā lidosta ‘Rīga’ VAS and ‘Air Baltic Corporation’ AS (C-27/17)

59In that regard, it should be recalled that the Court has identified two criteria to determine whether legal proceedings relating to the operations of a branch are linked to a Member State. First, the concept of ‘branch’ implies a centre of operations which has the appearance of permanency, such as the extension of a parent body. It must have a management and be materially equipped to negotiate business with third parties, so that they do not have to deal directly with the parent body. Secondly, the dispute must concern either acts relating to the management of a branch or commitments entered into by that branch on behalf of the parent body, if those commitments are to be performed in the State in which the entities are situated (see, to that effect, judgment of 19 July 2012, Mahamdia, C‑154/11, EU:C:2012:491, paragraph 48 and the case-law cited).