Courts of 3 Instances Confirmed that Donavia Abused Market Dominance
OREANDA-NEWS. May 25, 2011. The Federal Arbitration Court of North Caucasus District upheld the decision of the Office of the Federal Antimonopoly Service in the Rostov region (Rostov OFAS Russia) that “Donavia” OJSC violated Clause 6 Part 1 Article 10 of the Federal Law “On Protection of Competition”. The air carrier paid a fine - RUB 3,512,000, reported the press-centre of FAS Russia.
For flights on the Rostov-on-Don - Moscow - Rostov-on-Don route “Donavia” set more than ten tariff plans; the high costs of some of these tariffs was justified by various purchasing conditions and additional services that make flight more comfortable. At the same time, there were four tariffs with the same booking period and ticket registration, identical return policy, free-luggage rules, discount for children, etc. The difference in the airfare under these tariffs reached 3000 Rubles. The air carrier failed to give economic, technological or any other justification for fixing different tariffs for the same service.
The Commission of Rostov OFAS Russia found “Donavia” OJSC abused market dominance on the market of passenger air transportation services within the geographic boundaries of the Rostov-on-Don - Moscow - Rostov-on-Don route. Governed by Article 14.31 of the Code of the Russian Federation on Administrative Violations, Rostov OFAS Russia imposed an administrative fine upon “Donavia”– 0.01% of the air carrier’s income from selling air tickets under these tariffs in 2009.
Rostov Regional Arbitration Court, the 15th Arbitration Appeal Court and the Federal Arbitration Court of North Caucasus District pronounced legitimacy of the decision and determination issued by Rostov OFAS Russia.
“Donavia” OJSC fixed four plans with the same tariff conditions and services for passenger air transportation on the Rostov-on-Don - Moscow - Rostov-on-Don route. The difference in airfare reached 3000 Rubles: the airfare the KPXOW tariff was 6880 Rubles and under VSXOW, TSSOW and WSSOW tariffs - 5480, 4580 and 3880 Rubles accordingly. So some passengers had to pay more for exactly the same tickets”, commented the Acting Head of Rostov OFAS Russia, Constantin Korenchenko.
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