Corporation for Organisation of Air Traffic Abused Market Dominance
OREANDA-NEWS. April 28, 2011. The Federal Antimonopoly Service (FAS Russia) found that the “State-Run Corporation for Organisation of Air Traffic” Federal State Unitary Enterprise violated Clauses 5 and 8 Part 1 Article 10 of the Federal Law “On Protection of Competition” and “Lyotnie Proverki i Sistemy” CJSC violated Clause 5 Part 1 Article 10 of the Federal Law “On Protection of Competition”, reported the press-centre of FAS Russia.
An antimonopoly case was initiated upon a petition of “Skytest” Air Company” CJSC, where the company stated that the “State-Run Corporation for Organisation of Air Traffic” avoided providing works to the petitioner for flight reviews of ground facilities of radio-technical flight support, aircraft telecommunications and the systems of lightning navigational aid in civil aerodromes (further on referred to as radio-technical flight support and communications means).
The “State-Run Corporation for Organisation of Air Traffic” is the ordering party for the works for flight reviews of radio-technical flight support and communications means. Until November 2009 all works for the “State-Run Corporation for Organisation of Air Traffic” was carried out by two air companies – “Skytest” Air Company” CJSC and “Lyotnie Proverki i Sistemy”CJSC (100% of the company authorised capital is owned by the “State-Run Corporation for Organisation of Air Traffic”).
Concluding contracts for the works for flight reviews of radio-technical flight support and communications means, the “State-Run Corporation for Organisation of Air Traffic” set different payment procedures for the works carried out by its counteragents, which created discriminatory conditions for “Skytest” Air Company” CJSC.
After terminating the contract with “Skytest” Air Company” CJSC, the “State-Run Corporation for Organisation of Air Traffic” allocated all works for flight review of the equipment, that was on the books of the State-Run Corporation, to “Lyotnie Proverki i Sistemy”CJSC. At the same time the State-Run Corporation avoided prolonging the old contract or concluding a new contract with “Skytest” Air Company” CJSC in spite of numerous applications from the counteragent.
“Lyotnie Proverki i Sistemy”CJSC did not have technical possibilities to carry out the whole scope of necessary works.
Upon approval of the leadership of the “State-Run Corporation for Organisation of Air Traffic”, “Lyotnie Proverki i Sistemy”CJSC suggested that “Skytest” Air Company” CJSC would carry out some works under a sub-contract, and “Skytest” had to agree to enter into this contract.
When FAS made a decision, both contracts had not been signed yet.
The FAS Russia’s Commission concluded that “Lyotnie Proverki i Sistemy”CJSC, within the group of persons of the “State-Run Corporation for Organisation of Air Traffic”, unreasonably evaded a sub-contract with “Skytest” Air Company” CJSC for carrying out the above works for flight reviews of ground facilities of radio-technical flight support and communications means.
Having investigated the case, FAS Russia found that the “State-Run Corporation for Organisation of Air Traffic” and “Lyotnie Proverki i Sistemy”CJSC violated the antimonopoly law and issued a determination to the “State-Run Corporation for Organisation of Air Traffic” to eliminate the violations.
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