UTair Did not Fix Monopolistically Fare
OREANDA-NEWS. September 15, 2009. The Office of the Federal Antimonopoly Service in the Komi Republic (the Komi OFAS Russia) found that "UTair" Airlines" OJSC did not fix monopolistically high air fare on the Syktyvkar-Moscow-Syktyvkar route, reported the press-centre of FAS Russia.
The case was initiated upon discovering some elements of violating Part 1 Article 10 of the Federal Law "On Protection of Competition" (which prohibits abusing dominant position). Grounds for initiating the case: petition of a physical person to the antimonopoly body, according to which in October 2008 the air carrier had overrated its air fare.
Investigating the case, the Komi OFAS Russia established that in January-October 2008 the passenger air fare for the Syktyvkar-Moscow-Syktyvkar flight by "UTair" Airlines had been 9.7%, which had not exceeded the growth of consumer prices in that period in the Komi Republic (consumer prices had gone up by 11.9% and passenger transportation services - by 12.8%).
The antimonopoly body also concluded that the fuel mark-up in the air fare had been due to increasing prices for aviation fuel and lubrication materials in that period and had not exceed them. In 1-3 QQ 2008 the fuel mark-up did not cover expenses of "UTair" for aviation fuel and lubrication materials. Only in 4Q 2008 the air carrier reached positive balance on the Syktyvkar-Moscow-Syktyvkar route. "UTair" expenses for passenger transportation on this route did not exceed the necessary costs and profit.
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