OREANDA-NEWS. November 17, 2008. The Federal Antimonopoly Service (FAS Russia) sent an enquiry to the Minister of Transport of the Russian Federation, the Chairman of the Board of Directors of the "Airport" OJSC, about the information in the media on transferring the stake of ОАО "Siberia" OJSC to "Aeroflot" OJSC, reported the press-centre of FAS Russia.

According to the media, at the end of October 2008 the Ministry of transport received a letter from V.Okulov, the "Aeroflot" General Director, who asked to support transferring the state-owned stake of "Siberia" Airlines" OJSC (25.2 %) under direct control of "Aeroflot - Russian Airlines" OJSC, and the "Aeroflot" initiative was approved.

"Aeroflot" and "Siberia" compete on a number of international and domestic main routes which are most profitable for the air carriers. Controlling 25.5% of the shares of "Siberia" Airlines" OJSC, "Aeroflot - Russian Airlines" OJSC would be able to affect activities of "Siberia" Airlines" OJSC - it direct competitor on domestic market.

FAS Russia is concerned that transferring the state-owned stake of "Siberia" Airlines" OJSC would distort competition on domestic air transportation market and, as a consequence, increase the air fare on the routes where the companies become monopolists. It could also restrict the entry of other air carriers to these routes.

Furthermore, Article 13 of the Law "On Privatization of State and Municipal Property" contains the closed list of the methods of privatization, which does not include such methods of alienation as transferring under direct control.

Such transactions require preliminary approval by FAS Russia under Chapter 7 of the Federal Law "On Protection of Competition".