OREANDA-NEWS. April 09, 2014. The Federal Antimonopoly Service (FAS Russia) issued a warning to the airlines that have the dominant position on some markets. Elements of violating the antimonopoly law included imposing tariffs upon consumers without taking into consideration consumer demand trends drawing near the departure dates.

By 15th May 2014, “Aeroflot – Russian Airlines” OJSC, “Rossiaya” Airlines” OJSC, “Orenburg Airlines” OJSC, “Rossiya” Vladivostok” OJSC, “S7” Airlines” OJSC, “Globus” Airlines” Ltd., “UTair” Airlines” OJSC, and “Transaero” Airlines” OJSC must improve the systems of air tickets sales. The tariffs should not be raised, but must decrease drawing near to the departure date, accounting for the consumer demand trends and the number of sold air tickets in a particular time period (passenger load factor).

Air transportation is exercised using different systems of air tickets sales enabling to manage income depending on the revenue loan on flights in line with the developing demand. The system of dynamic pricing used in air transportation provides for increasing prices for the services in proportion to increased demand and aircraft occupancy, and, on the contrary, decreasing prices (or maintaining low tariffs up to the departure date) with low demand and aircraft occupancy.

At the same time analysis of the situation shows the following: the markets of air carriage sales have an established practice, characterized by an exclusively upward trend of transportation costs, as well as maintaining prices regardless of the level of aircraft loading.

In 2013, passenger load factor on international routes exceeded this indicator on domestic routes by 7.1 %. The carriers’ refusals from price competition on the departure date considerably restrict competition on air transportation markets and result in maintaining high prices, decelerate carriage, and infringe the interests of general public (elements of violating Clause 3 Part 1 Article 10 of the Federal Law “On Protection of Competition”).