OREANDA-NEWS. December 08, 2010. The Third Arbitration Appeal Court upheld the decision of Krasnoyarsk Regional Arbitration Court that had pronounced legitimacy and reasonableness of the determination of the Office of the Federal Antimonopoly Service in Krasnoyarsk region (OFAS Russia). The antimonopoly body requested “Aeroflot – Russian Airlines” OJSC to transfer unlawfully obtained income to the federal budget, reported the press-centre of FAS Russia.

At the end of 2008, Krasnoyarsk OFAS Russia received petitions, where citizens complained that “Aeroflot – Russian Airlines” OJSC had raised the airfare on the “Krasnoyarsk – Norilsk – Krasnoyarsk” route to 36,000 Rubles. The existing maximum airfare for air transportation on Krasnoyarsk – Norilsk line was set by the Department of Economic Planning and Industrial Policy of the Krasnoyarsk regional Authority at 8,500 Rubles.

The rates for air transportation of passengers and luggage on local routes are regulated by the Ministry of Transport and Communications of the Krasnoyarsk Region, which informed “Aeroflot – Russian Airlines” OJSC that the company must apply the established airfare. “Aeroflot – Russian Airlines” OJSC ignored the request of the Ministry of Transport of the Krasnoyarsk Region.

“Aeroflot – Russian Airlines” OJSC has dominant position on the market of air transportation on the “Krasnoyarsk – Norilsk – Krasnoyarsk” route. The company arbitrary set the rates for such air carriage and violated the pricing procedures for the services of air transportation of passengers and luggage.

In July 2009, Krasnoyarsk OFAS Russia found that “Aeroflot – Russian Airlines” OJSC abused market dominance (in violation of Article 10 of the Federal Law “On Protection of Competition”) and issued a determination to transfer the income, obtained as a result of the antimonopoly violation , to the federal budget.

“Aeroflot – Russian Airlines” OJSC filed a lawsuit against the decision and determination of the antimonopoly body claiming that OFAS infringed the company’s rights and legitimate interests. Having considered the case, the Court of First Instance and the Appeal Court allowed the company’s claim invalidating the decision and determination issued by Krasnoyarsk OFAS Russia.

However, the Federal Arbitration Court of the East-Siberian Federal District considered a cassation appeal of Krasnoyarsk OFAS Russia and reversed the rulings of the Courts of First and Appeal instances. The case was forwarded for reconsideration to Krasnoyarsk Regional Arbitration Court.

As a result of reconsideration, Krasnoyarsk Regional Arbitration Court dismissed the claim of “Aeroflot – Russian Airlines” OJSC and confirmed legitimacy of the decision and determination issued by Krasnoyarsk OFAS Russia.

Then “Aeroflot – Russian Airlines” OJSC lodged an appeal to the Third Arbitration Appeal Court, which upheld the judgment of Krasnoyarsk Regional Arbitration Court. Therefore, the Courts pronounced legitimacy and reasonableness and the decision and determination issued by Krasnoyarsk OFAS Russia.

“The income unlawfully obtained by “Aeroflot – Russian Airlines” OJSC must be transferred to the federal budget by 31st December 2010”, stated the Head of Krasnoyarsk OFAS Russia, Mr. Valery Zakharov.