OREANDA-NEWS. February 06, 2013. The Office of the Federal Antimonopoly Service in the Novosibirsk Region (Novosibirsk OFAS Russia) found that “S7” [Sibir] Airlines” OJSC violated the antimonopoly law (Clause 1 Part 1 Article 10 of the Federal Law “On Protection of Competition”), reported the press-centre of FAS Russia. 

Investigating the case, Novosibirsk OFAS Russia carried out a comparative analysis of the airfares for passenger transportation in the economy class by “S7” Airlines” OJSC on the Novosibirsk – Anapa route and the airfares for passenger transportation in the economy class by “Vladivostok Avia” OJSC on the Novosibirsk - Krasnodar route, comparable by the ground distance, seasonal fluctuations and the type of aircrafts, in June – September 2011.

Novosibirsk OFAS Russia established that on similar routes “S7 Airlines” OJSC had ordinary and special economy rates higher than “Vladivostok Avia” OJSC (by 65% and 43% accordingly). At the same time, the costs of “S7 Airlines” OJSC per passenger transportation are only 3% higher than “Vladivostok Avia” OJSC.

Having investigated the case, Novosibirsk OFAS Russia found that “S7 Airlines” OJSC violated the antimonopoly law by fixing monopolistically high economy airfares for air passenger transportation on the Novosibirsk – Anapa route in June – September 2011. OFAS issued a determination to the air carrier to eliminate violations of the antimonopoly law.

As explained Deputy Head of Novosibirsk OFAS Russia, Natalia Kamneva, “in spite of the absence of government regulation of airfares, air carriers should remember about liability for fixing monopolistically high prices”.