OREANDA-NEWS. April 11, 2011. Kalmykia OFAS Russia fined “RusLine” CJSC 1,069,860 Rubles for abusing its dominance on the market of passenger air transportation services on the “Moscow – Elista – Moscow” route in 2010, reported the press-centre of FAS Russia.

On 14th February 2011, Kalmykia OFAS Russia found that “RusLine” CJSC violated Part 1 Article 10 of the Federal Law “On Protection of Competition” (abusing market dominance).

The company fixed and maintained unreasonably high prices for passenger air transportation services on the “Moscow – Elista – Moscow” route in 2010.

The case against the air carrier was initiated upon a petition from a physical person. The OFAS Commission established that in 2010 the costs of flights on the “Moscow – Elista – Moscow” route increased on average by 6% in comparison with 2008-2009, while the economy airfare increased on average by 25%.

Under Article 14.31 of the Code on Administrative Violations, Kalmykia OFAS Russia imposed an administrative fine upon “RusLine” CJSC in the size of 2 % of the income gained from providing air transportation services on the “Moscow – Elista – Moscow” route in 2010.

“I believe this is a socially important determination for the citizens of the Republic of Kalmykia as air transportation in Russia should be affordable to the whole population”, thinks the Head of Kalmykia OFAS Russia, Mantsa Sangadzhieva.

Reference:

On 7th October 2010, the Novosibirsk Office of the Federal Antimonopoly Service found that “Siberia Airlines (S7)” OJSC violated Part 1 Article 10 of the Federal Law “On Protection of Competition”.

Novosibirsk OFAS Russia received a complaint from a local resident about sharp increase of the airfare of “Siberia Airlines” OJSC for the flights on the “Novosibirsk – Chita – Novosibirsk” route. Having examined the documents, submitted by the air carrier, the Commission of the antimonopoly body concluded that increasing economy airfare was not justified. According to the documents, the costs per flight increased by 9%, while the cheapest economy airfare was raised by 20%. Also the Commission of Novosibirsk OFAS Russia found that no all costs had increased within the analysed period. For instance, the average cost of the aviation fuel and lubrication materials in 2009 was lower than at the beginning of 2009.