Air Fares on Novosibirsk-Chita Route Were Unreasonably High, FAS
OREANDA-NEWS. October 12, 2010. Novosibirsk Office of the Federal Antimonopoly Service (FAS Russia) found that “Siberia Airlines” (S7 Airlines) OJSC violated Part 1 Article 10 of the Federal Law “On Protection of Competition”, reported the press-centre of FAS Russia.
Earlier Novosibirsk OFAS Russia received a complaint about sharp increase of air fare by “Siberia Airlines” OJSC on the Novosibirsk – Chita – Novosibirsk route. Having studied the documents submitted by the air carrier, the Commission of the Antimonopoly Service concluded that increase of air fares for the economy class was not justified. According to the documents, costs of a single flight increased by 9%, while the cheapest air fare for the economy class increased by 20%. Also the Commission of Novosibirsk OFAS Russia established that not all types of costs increased in the analyzed period. For example, average cost of aviation fuel and lubrication materials in 2009 was lower than at the beginning of 2009.
“Siberia Airlines” OJSC was not able to persuade the Commission that growth of the passenger air fares on the Novosibirsk – Chita – Novosibirsk route was economically justified, so in the near future the respondent will receive a determination to stop the antimonopoly violations”, commented the situation with the case Deputy Head of Novosibirsk OFAS Russia, Mr. Alexander Yelchaninov.
Novosibirsk OFAS Russia is investigating other complaints against air carriers operating in the Siberian Federal District.
Reference:
Part 1 Article 10 of the Federal Law “On Protection of Competition” prohibits actions (omissions) of a dominant economic entity on the market that result or can result in preventing, restricting or eliminating competition and (or) infringing the interests of other persons, in particular, fixing monopolistically high or low prices.
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