OREANDA-NEWS. On July 31, 2008 the Dagestan Office of the Federal Antimonopoly Service (OFAS Russia) recognized that "Dagestan Airlines" OJSC violated Article 10 of the Federal Law "On Protection of Competition" (abusing dominant position on the goods market) and issued a determination to eliminate the violations, reported the press-centre of FAS Russia.

The antimonopoly office established that "Dagestan Airlines" OJSC violated the requirement on maximum 20% break-even level for passenger air carriage (Clause 7 of No.724 Decree of the Government of the Russian Federation of 17.09.1992). According to the calculations of Dagestan OFAS Russia, the commercially viable airfare on the Makhachkala - Moscow route is 6363 Rubles, while "Dagestan Airlines" OJSC sold tickets at a price over than 11 000 Rubles.

Therefore, "Dagestan Airlines" OJSC violated the statutory pricing procedures for passenger carriage on the Makhachkala - Moscow route.

Having investigated the case, Dagestan OFAS Russia issued a determination requesting the airline to reduce its unreasonably overpriced rates for passenger carriage and agree upon the airfare calculation with Dagestan OFAS Russia.