OREANDA-NEWS. August 09, 2010. The Federal Antimonopoly Service (FAS Russia) found that "Omsk Airport" OJSC violated Clauses 5 and 9 Part 1 Article 10 of the Federal Law "On Protection of Competition" (abusing market dominance) and issued a determination to eliminate the violations, reported the press-centre of FAS Russia.

"S7 Airlines" OJSC repeatedly made enquiries to "Omsk Airport" OJSC about concluding a contract between "S7 Airlines" OJSC and Omsk Airport" OJSC for storage of the company's fuel. The Airlines referred to the Decree of the Government of the Russian Federation "On the Procedures for Proving Access to the Services of Natural Monopolies in Airports" of 22nd July 2009.

Justifying its intention to independently deliver fuel for its aircrafts, "S7 Airlines" OJSC stated that as the Airlines has direct contracts with suppliers of aviation fuel and it can independently deliver aviation fuel for its flights at a price considerably lower than the estimated price of "Omsk Airport" OJSC, which would enable cutting down the costs of ground handling of the company's aircrafts.

"Omsk Airport" OJSC refused to enter into a contract with "S7 Airlines" OJSC for fuel storage, referring to the absence of the mechanisms for implementing the provisions of the Rules for providing access to the services of natural monopolies in airports, approved by the Decree of the Government of the Russian Federation of 22nd July 2009, as well as lack of technical possibilities to provide services for storage of aviation fuel.

"The airport unreasonably evaded a contract with "S7 Airlines" OJSC for storage of aviation fuel in Omsk airport, which infringed the interests of the air carrier", said the Head of the FAS Russia's Department for Control over Transport and Communications, Dmitry Routenberg. "This prevented access of "S7 Airlines" OJSC to the market of aviation fuel storage in Omsk airport. Possibility of air carriers to independently purchase fuel by organizing tenders, buying fuel through commodity exchange or entering into long-term contracts with fuel producers enable cutting down the costs of fuel". "Dmitry Routenberg reminded that in the total costs structure of airlines fuel costs went down from 45% in 2008 to 24% in 2010. "This is a principally important factor for reducing air fares", added Mr. Routenberg.

In 2009 FAS Russia initiated six antimonopoly cases against companies providing services for aviation fuel supply in airports. Cases against "Avianeft" CJSC (Kaliningrad), "Creditinvest" Ltd. (Mineralnie Vody), "Anapa Airport" CJSC, "Khabarovsk Airport" OJSC, "Krasnodar International Airport" OJSC and "SibirAviaService" CJSC (Krasnoyarsk) were initiated on the grounds that the companies refused to provide "Aeroflot - Russian Airlines" OJSC possibilities to deliver its own aviation fuel to the airports and to provide fuel storage services.