FAS Refuses to Satisfy Petition of UTair Airlines
OREANDA-NEWS. February 01, 2007. The Federal Antimonopoly Service (FAS Russia) refused to satisfy a petition of the "UTair Airlines" OJSC on purchasing 49% shares of the "Roschino" Airport" OJSC, reported the press-centre of FAS Russia.
Processing the petition, FAS Russia established that "Roschino" Airport" (Tyumen) is the only economic entity, providing flights by 1 and 2 category aircrafts in the Tyumen region. It is an international airport with the federal status, that is suitable for 10 types of aircrafts (Tu-154, Tu-134, Il-76, An- 12, An-24, An-26, Yak-40, Yak-42, Il-18, L-410, Boeng -737, Il-86), and all types of helicopters.
Except flights to/from Moscow, competition on the market of airborne passenger transportation in the Tyumen region (without its autonomous districts) on specific routes is practically non existent. Most of air transportation (the number of routes) по количеству маршрутов) from the "Roschino" Airport is performed by the "UTair Airlines" OJSC, whose share of air transportation to all directions exceeds 60%. The airlines is the only air carrier performing scheduled flights on 25 out of 31 directions, 16 out of 21 routes to the north of the Tyumen region (the Khanty-Mansy Autonomous District, the Yamalo-Nenetsky Autonomous District ХМАО, ЯНАО), and 5 out of 8 international flights.
The "UTair Airlines" OJSC is one of largest air carriers in the Russian Federation concentrated mainly in the Tyumen region.
The "UTair Airlines" OJSC, providing services in scheduled airborne passenger transportation, and the "Roschino" Airport" OJSC, exercising airport and ground handling of aircrafts, operate on the mutually dependent goods markets.
By purchasing the assets of the "Roschino" Airport, the air carrier, that has the dominant position on the air transport services from the "Roschino" Airport" OJSC will strengthen its position on the market in general and will gain a possibility to influence the decisions made by the "Roschino" Airport" OJSC, including its pricing policy and slot allocation.
If the transaction were allowed, the "UTair Airlines" OJSC would be able to pursue its interests in forcing our the existing market players and restricting the entry of new competitors, which would strengthen the airlines' position on the market of scheduled air transportation and affect the level of competition on the market in question.
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