OREANDA-NEWS. June 07, 2012. The Court upheld a decision of the Antimonopoly Service to impose a multi-million fine upon “UTair Airlines” OJSC for unlawfully manipulating airfares.

On 31st May 2012, Tyumen Regional Arbitration Court pronounced legitimacy of a 2.5 million fine (2,568,448.3 Rubles) imposed by Tyumen OFAS Russia upon “UTair Airlines” OJSC.

On 28th June 2011, Tyumen OFAS Russia found a collusion on the market of air transportation. The antimonopoly body found that “UTair Airlines” OJSC and “Yamal” Aviation Transport Company” OJSC violated Part 1 Article 11 of the Federal Law “On Protection of Competition” (concerted actions).

Investigating the case materials, Tyumen OFAS Russia established that in 2010, in the period of the highest demand for passenger air transportation services (summer 2010) “UTair Airlines” OJSC and “Yamal” Aviation Transport Company” OJSC fixed approximately equal economy airfare on Tyumen – Sochi – Tyumen route. The difference in airfares set by the air carriers was 90 Rubles.

The Antimonopoly Service also established that during three years (2008-2010) economic entities repeatedly fixed and maintained the same prices - with formal difference between competitors’ prices - 90 Rubles.

Tyumen OFAS Russia issued a mandatory determination to “UTair Airlines” OJSC and “Yamal” Aviation Transport Company” OJSC to stop violating the antimonopoly law and exercise actions towards protecting competition.

Under Article 14.32 of the Code of the Russian Federation of the Administrative Violations, the antimonopoly body fined “UTair Airlines” OJSC over 2.5 million Rubles (2,568,448.3 Rubles).

“When the companies compete between each other for consumers, it can lead, in particular, to reducing prices, the companies have possibilities for this”, said Deputy Head of Tyumen OFAS Russia, Igor Veretennikov.