FAS to Draw Attention to Compensation Payments by Foreign Air Carriers
OREANDA-NEWS. December 17, 2008. The Federal Antimonopoly Service (FAS Russia) sent a letter to the Government of the Russian Federation to draw attention to the situation related to the compensation payments by foreign air carriers for flying over the territory of the Russian Federation, which puts Russian air carriers in unequal competitive conditions, reported the press-centre of FAS Russia.
FAS Russia turned its attention to the situation upon a petition of Yury Luzhkov, the Mayor of Moscow, and S. Chemezon, the General Director of "Rostechnologia" State-Owned Corporation.
For a number of years foreign air companies that use agreed services for Trans-Siberian routes (ТSM), make payments to a Russian air carrier "Aeroflot - Russian Airlines" OJSC. The system of payments, called "compensation payments" (royalty), was formed at the beginning of 1980s for the right of foreign air carriers to fly over the territory of the USSR. The beneficiary became the only domestic air carrier at that time. "Aeroflot" maintains this privilege in the new economic conditions of competitive air transportation market.
FAS Russia believes that the system of compensation payments, that are received by a single economic entity "Aeroflot - Russian Airlines" OJSC, violates competitive conditions on the Russian market for air transportation.
Understanding the importance of "compensation" payments in the system of mutual settlements of the designated air carriers as an element of the balance of the interests of Russian and foreign air carriers, FAS Russia believes it is necessary to gradually modernize the system in the interests of all participants of the Russian air transportation market.
FAS Russia suggested using these payments for a specific purpose of modernizing the system of air navigation services, which is in the interests of both Russian and foreign air carriers. According to FAS Russia, these measures will, in particular, facilitate competition on the markets of international and domestic air transportation.
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