OREANDA-NEWS. December 16, 2011. The Arbitration Court of the Republic of Dagestan pronounced legitimacy and reasonableness of the decision and determination issued by the Federal Antimonopoly Service in the Republic of Dagestan (Dagestan OFAS Russia) regarding “Dagestan Airlines” OJSC and “Sirius” Ltd. that divided passenger seats for a scheduled flights on the Makhachkala – Istanbul – Makhachkala route between themselves, reported the press-centre of FAS Russia.

Earlier Dagestan OFAS Russia received complaints from tour operators – “Kruiz” Ltd. and “Izumrud” Ltd. regarding “Dagestan Airlines” OJSC. According to No.19 agreement between “Dagestan Airlines” OJSC and a tour operator - “Sirius” Ltd. of 19th January 2011, the latter got a block of passenger seats (139 seats, which is over 80% of the aircraft transportation capacity) for scheduled flights on the Makhachkala – Istanbul – Makhachkala route.

The Commission of Dagestan OFAS Russia concluded that as a result of the agrement “Sirius” Ltd. obtained a possibility to unilaterally sell air tickets for the flights on this route and exercise decisive influence on the relevant market (the Makhachkala – Istanbul – Makhachkala route), which restricted access of other tour operators to this route.

However, such actions infringe not only the rights and interests of tour operators, but also members of general public that wish to fly on business or leisure trips, because other booking offices and agents do not sell tickets for this flight. It forces everybody wishing to get tickets for scheduled flights on this route to approach “Sirius” Ltd.

Dagestan OFAS Russia found that “Dagestan Airlines” OJSC violated Part 1 Article 10 and Part 1 Article 11 of the Federal Law “On Protection of Competition” and “Sirius” Ltd. violated Part 1 Article 11 of the Federal Law “On Protection of Competition”.

OFAS issued determinations to “Dagestan Airlines” OJSC and “Sirius” Ltd. to stop violating the antimonopoly law. The companies must terminate the agreement for providing a block of seats to transport passengers on scheduled flights on the Makhachkala – Istanbul – Makhachkala route.

“Dagestan Airlines” OJSC and “Sirius” Ltd. disagreed with the decision and determination of the antimonopoly body and filed a lawsuit to the Arbitration Court of the Republic of Dagestan, which dismissed the claim and pronounced legitimacy and reasonableness of the decision and determination issued by Dagestan OFAS Russia.

“We are satisfied with the Court judgment that confirmed legitimacy of the decision and determination issued by our Office. They were prepared within the scope of reference of the antimonopoly body and in accordance with the law of the Russian Federation”, said the Head of Dagestan OFAS Russia, Kurban Kubasaev.