OREANDA-NEWS. July 09, 2008. The Moscow Arbitration Court dismissed the claim of "UTair" Airlines" OJSC to invalidate the decision of the Federal Antimonopoly Service (FAS Russia) on refusal to grant its petition on buying a block of shares of "Roschino" Airport" OJSC, reported the press-centre of FAS Russia.

On 28th January 2008, FAS Russia decided to dismiss the petition of "UTair" Airlines" OJSC on buying 49% shares of "Roschino" Airport" OJSC.

Processing the petition, FAS Russia established that Roschino" Airport" OJSC (Tyumen) is the only economic entity exercising the flights of 1 and 2-class aircrafts in the Tyumen region. It is an international airport that has a federal status, and can accept 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, and IL-86), as well as all types of helicopters.

In the Tyumen region (without autonomous districts), competition on the market of air passenger transportation on specific routes is practically non-existent (except flights to/from Moscow). "UTair" Airlines" OJSC exercises most of air transportation (number of routes) from "Roschino" airport and its share of air transportation to all directions increases 60%. The Airlines is the only carrier, providing regular flights on 25 out of 31 routes, on 16 out of 21 routes to the north of the Tyumen region (the Khanty-Manciisky Autonomous District (Okrug) and Yamalo-Nenetsky Autonomous District (Okrug), and 5 out of 8 international flights.

"UTair" Airlines" OJSC is one of the largest airlines of the Russian Federation, focused mainly on the Tyumen region.

"UTair" Airlines" OJSC offers services for regular air transportation of passengers, and "Roschino" Airport" OJSC provides airport and ground services of aircrafts. The goods markets, on which the companies operate, depend on each other.

By acquiring the assets of "Roschino" Airport" OJSC, the Airlines, which has the dominant position on the market of air transportation from "Roschino" airport, would be able to strengthen its position on the market in general and influence the decisions made by "Roschino" Airport" OJSC

FAS Russia established that should the transaction go ahead, "UTair" Airlines" OJSC would be able to materialize its self-interest in pushing the existing competitors out of the market and restricting market entry of any new competitors, which would strengthen the company's position on the market of regular air transportation and affect the level of competition on the gods market in question.

"UTair" Airlines" OJSC disagreed with the decision adopted by the antimonopoly authority and appealed. The Court, however, confirmed validity of the FAS Russia's decision on refusing to authorize the transaction.