OREANDA-NEWS. October 01, 2013. The Office of the Federal Antimonopoly Service in the Perm region (Perm OFAS Russia) found that “Siberia” Airlines” OJSC, “Aeroflot – Russian Airlines” OJSC and “UTair” Airlines” OJSC violated the Federal Law “On Protection of Competition”. The companies exercised concerted actions towards fixing monopolistically high air fares for passenger and luggage transportation by regular flights on the Perm-Moscow route.

The case was initiated upon petitions from physical persons who noted that lights from Moscow to Perm were more expensive than flights to other equidistant cities.

Investigating the case, experts of Perm OFAS Russia established that passenger air fares of “Siberia” Airlines” OJSC, “Aeroflot – Russian Airlines” OJSC and “UTair” Airlines” OJSC were higher than, for instance, the air fares on the Moscow-Ufa or Moscow-Krasnodar routes with a comparable flight duration. At the same time, the carrier costs for transportation from Moscow to Perm frequently were lower and plane loading higher than to other equidistant cities.

OFAS also discovered that fixing the air fare for the Perm-Moscow route the airlines were primarily guided by the competitor’s prices rather than their own actual expenses. As a result, in 2012 the air carriers reconsidered the fares practically simultaneously with each other.

OFAS will issue determinations to the violators to stop abusing dominance and to avoid concerted actions. The airlines must fix the air fares that do not exceed the costs on comparable routes under competitive conditions.

“Such conduct is caused by underdeveloped competition. “Siberia” Airlines” OJSC, “Aeroflot – Russian Airlines” OJSC and “UTair” Airlines” OJSC have dominant position on the market of services for regular passenger and luggage transportation by air on the Perm-Moscow (Moscow-Perm) route. Their aggregate share is 90% and the airlines can exercise decisive influence upon the situation on the market”, pointed out Deputy Head of Perm OFAS Russia, Marina Kudryavtseva.