OREANDA-NEWS. January 24, 2013. The Office of the Federal Antimonopoly Service in the Novosibirsk Region (Novosibirsk OFAS Russia) found that “S7 [Sibir] Airlines” OJSC violated the antimonopoly law (Clause 1 Part 1 Article 10 of the Federal Law “On Protection of Competition”).

The company violated the law by fixing monopolistically high rates for air transportation of passengers in the economy class on regular flights on “Novosibirsk – Sochi – Novosibirsk” route in June – September 2011.

Investigating the case, Novosibirsk OFAS Russia carried out a comparative analysis of the economy rates for passenger air transportation by “S7 Airlines” OJSC on Novosibirsk – Sochi route and the economy rates for passenger air transportation by “Vladivostok Avia” OJSC on the Novosibirsk - Krasnodar route, comparable by the ground distance, seasonal fluctuations and the type of aircrafts, in June – September 2011.

Novosibirsk OFAS Russia established that on similar routes “S7 Airlines” OJSC has higher ordinary and special economy rates than “Vladivostok Avia” OJSC (by 65% and 43% accordingly). “S7 Airlines” OJSC has lower costs per passenger transportation that “Vladivostok Avia” OJSC.

OFAS issued a determination to the air carrier to eliminate violations of the antimonopoly law.

In 2011, “S7 Airlines” OJSC was the only air carrier on the Novosibirsk – Sochi route and, therefore, had the dominant market position. Under the antimonopoly law, fixing monopolistically high prices by air carriers on the market with underdeveloped competition means abusing market dominance. Such violations adversely affect the state of regional air transportation markets”, explained Deputy Head of Novosibirsk OFAS Russia, Natalia Kamneva.