Court Confirmed FAS Decision on Aeroflot
OREANDA-NEWS. September 02, 2010. After a second hearing, the Krasnoyarsk Regional Arbitration Court confirmed validity of the decision and determination issued by the Krasnoyarsk Office of the Federal Antimonopoly Service (OFAS Russia) regarding “Aeroflot - Russian Airlines’ OJSC (further on referred to as “Aeroflot” OJSC). OFAS recognized the fact of setting excessive tariffs for air transportation on the Krasnoyarsk – Norilsk – Krasnoyarsk route, reported the press-centre of FAS Russia.
In July 2009, Krasnoyarsk OFAS Russia found that “Aeroflot” OJSC violated Article 10 of the Federal Law “On Protection of Competition” and issued a determination to transfer the income, unlawfully obtained as a result of antimonopoly violations, to the federal budget.
“Aeroflot” OJSC challenged the decision and determination of the antimonopoly body at court.
The income gained by “Aeroflot” OJSC (w/o VAT) for transferring passengers in economy class on the Krasnoyarsk – Norilsk – Krasnoyarsk route in September 2008 - March 2009 by applying the tariff, which exceeded the base fare of RUB 8500.00 (including VAT and fuel charges) was RUB 137,446 (including fuel charges and agent commissions for selling air tickets for those flights).
Tariffs for the services of air transportation of passengers and their luggage on local routes are regulated by the Ministry of Transport and Communications of the Krasnoyarsk Region, which informed “Aeroflot” OJSC that the company must use the established tariff for air transportation. “Aeroflot” OJSC ignored the warning of Krasnoyarsk Regional Ministry of Transport.
Having dominant position on the air transportation market on the Krasnoyarsk – Norilsk – Krasnoyarsk route, “Aeroflot” OJSC arbitrary fixed the tariff for these transportations, and violated the established pricing procedures for the services of air transportation of passengers and their luggage.
The Court of the First Instance and the Appeal Court allowed the claim of the airline and ruled the decision and determination of the Krasnoyarsk OFAS Russia invalid.
However, the Federal Arbitration Court of the East –Siberian District considered a cassation appeal filed by OFAS Russia and overturned the rulings of the Courts of the First and Second Instances. The case was remanded for reconsideration to the Krasnoyarsk Regional Arbitration Court.
As a result of the second hearing, Krasnoyarsk Regional Arbitration Court confirmed validity of the decision and determination issued by OFAS Russia.
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