OREANDA-NEWS. August 12, 2013. Rostov Regional Arbitration Court upheld the determination of the Office of the Federal Antimonopoly Service in the Rostov Region (Rostov OFAS Russia) to impose an administrative fine upon “UTair” airlines – 650,000 Rubles.

In October 2012, the Commission of Rostov OFAS Russia revealed that “Aeroflot” OJSC, “Siberia” Airlines” OJSC and “UTair” Airlines” OJSC unreasonably stopped selling economy tickets for flights between Moscow and Rostov-on-Don.

OFAS established that in January – September 2011 around 25% of the passenger traffic were served by other air carriers including “Avianova” Ltd., “SkyExpress” CJSC and “Continent” Airlines” OJSC that terminated operations in October 2011. As a result of the exit of these companies from the market, 90% of the market is controlled by three airliners: “DONAVIA” OJSC (“Aeroflot” OJSC), “Siberia” Airlines” OJSC and “UTair” Airlines” OJSC.

Analysis of the tickets trends for each air fare showed considerable changes in the pricing policy of, for instance, “Aeroflot” OJSC: the share of cheap tickets (around 3000 Rubles) reduced by over twofold while the share of more expensive tickets (around 6000Rubles) also experienced a twofold increase.

Thus, “Aeroflot” OJSC, “Siberia” Airlines” OJSC and “UTair” Airlines” OJSC economically unreasonably reduced sale of the cheapest tickets for passenger transportation between Moscow and Rostov-on-Don in spite of the demand for such air fare.

The Commission of Rostov OFAS Russia found that the airlines violated Clause 4 Part 1 Article 10 of the Federal Law “On Protection of Competition”. The total fines upon airlines exceeded 8 million Rubles.

“UTair” Airlines” OJSC filed a lawsuit challenging the fine, but the claim was dismissed.