OREANDA-NEWS. April 08, 2010. By 30th April 2010, air carriers must inform the Federal Antimonopoly Service (FAS Russia) about the measures they have undertaken to balance the interests of air carriers and consumers.

Upon information in mass media, and petitions from physical persons and legal entities, the Federal Antimonopoly Service (FAS Russia) has analyzed activities of air carriers operating on domestic routes and found the following:

The rates system used for air transportation is characterized by multiple rates and conditions for their application, and a complex cost structure (rate + charges). Because rates are described in special terms and must be coded, complete information about the rates is rather complicated for individuals - consumers of transportation services. Under such circumstances, the content and the means of conveying the information about air fare to consumers is of special importance.

FAS Russia found that that air carriers can infringe the interests of consumers, resulting in some instances from nontransparent price policy of the air carriers. Air carriers do not fully observe the provisions of the air law on providing reliable and complete information about transportation conditions. For instance, when booking carriage services, making payments and registering the carriage, passengers should be given information about the total price, including the rate(s) and charges and if a passenger orders additional luxury services- also the price of these services, fixed by the air carrier, as the total carriage price.

Discrepancies between the air fare stated by the air carrier, in particular, on the company's website, and the actual payable price of carriage is one the most frequent passenger complaints, which shows that air carriers (sale agents) supply insufficient and/ or distorted information about the companies' rates and additional charges. Air carriers should further justify legitimacy of different fees and charges fixed by them.

FAS Russia is especially concerned by the practice of using "nonrefundable" airfare when tickets are bought at a lower, nonrefundable rate). Article 108 of the Air Code of the Russian Federation establishes the right of air passengers to refuse the carriage, notifying the air carrier no later than 24 hours before the take-off, if the Air Transportation Rules set by the air carrier does not provide for a privileged deadline, and be paid back the sum (s)he paid for the air transportation.

If a passenger refuses to take the flight later than the deadline, the passenger can be paid back the sum (s)he paid for the carriage minus a charge that cannot exceed 25% of the sum paid for the carriage.

The provisions of the Air Code of the Russian Federation about the passenger right to be returned the funds if a passenger voluntarily refuses the carriage are matched the Rules for setting and applying the rates for regular air passenger and luggage transportation and civil aviation charges, approved by No.155 Order of the Ministry of Transport of the Russian Federation of 25th September 2008. Under Clause 100 of the Rules, air carriers should fix the charge for refusal to take the flight at no more than 25% of the sum paid for transportation.

Therefore, the practice of air carriers to use "nonrefundable" tickets" contravenes both Article 108 of the Air Code of the Russian Federation, which grants passengers an unconditional right to receive the sum (a part of the sum) paid for carriage if the passengers voluntarily refuse the carriage, and the above Rules for rates fixing and application, which do not provide for the air carriers to use nonrefundable rates.

To prevent and suppress unfair competition, as well as in the instances of market dominance of an economic entity, in order to balance the interests of air carriers and consumers of transportation services FAS Russia finds the following steps necessary:

1. If under Clause 2 Article 102 of the Air Code of the Russian Federation, air carriers have their own Air Transportation Rules, including the rules for selling transportation services, air carriers must provide access to such Rules in their offices, sales offices and by publishing them at the air carriers' websites.

2. Air carriers (sales agents - if such information is provided to sales agents) must provide access to information regarding:

а) all rates applied by the air carrier for a particular route, and their terms and conditions. Such information should be provided in Russian and if a special jargon and codes are used, should contain the necessary explanations;

б) all additional charges and taxes applied by the air carrier as well as the procedures for fixing such charges and legitimacy of these procedures;

в) the procedures for returning the funds in case carriage is refused or if carriage conditions have changed.

3. Terminate the practice of selling air tickets at the rates that exclude possibility of returning the air tickets if passengers voluntarily refuse the carriage.

The air carriers must report to FAS Russia about the undertaken measures by 30th April 2010.