Court Dismisses Claim of Aeroflot on FAS Warning
OREANDA-NEWS. September 22, 2014. Moscow Arbitration Court dismissed the claim of “Aeroflot – Russian Airlines” OJSC to invalidate a warning of the Federal Antimonopoly Service (FAS Russia).
In April 2014, the Antimonopoly Service issued warnings to air carriers that have dominant position on some markets. Elements of violating the antimonopoly law included imposing tariffs upon consumers without taking into consideration consumer demand trends closer to the departure date.
“Aeroflot – Russian Airlines” OJSC, “Russia” Airlines” OJSC, “Orenburg” Airlines”, “Russia” Vladivostok” Airlines” OJSC, “Siberia” Airlines” OJSC, “Globus Airlines” Ltd., “UTair” Airlines” OJSC, and “Transaero” Airlines” OJSC were supposed to improve their ticket sales systems. Tariffs should not only raise but also decrease closer to the departure date in view of changed consumer demand and the number of sold tickets during a designated period of time (the percentage of filling in an aircraft).
“Aeroflot – Russian Airlines” OJSC disagreed with FAS warning and filed a lawsuit. Moscow Arbitration Court dismissed the claim, recognizing legitimacy of the actions undertaken by the Antimonopoly Service.
“Dynamic pricing when prices not only increase or are maintained at a high level, but also go down when the demand is low, protects not only passengers but also air carriers, encouraging passenger flow growth”, thinks Deputy Head of FAS, Anatoly Golomolzin. “The conclusion was made by both antimonopoly officers, supported by Courts and expert community under the frame of discussions at FAS Expert Council”.
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