OREANDA-NEWS. On November 14, 2008 the Head of the Federal Antimonopoly Service (FAS Russia) Mr. Igor Artemiev participated in the Session of the Council of the Heads of the Commonwealth of Independent States' Governments where he presented a Report "On the state of competition in the markets of air transportation of the CIS member-states", reported the press-centre of FAS Russia.

In his opening address the Head of the FAS Russia noted that the Report had been prepared by the Interstate Council on Antimonopoly Policy (ICAP) within the frameworks of conducted researches of the markets of the CIS member-states.

"This market has been chosen not casually: successful functioning of the market of passengers air transportations is the important factor of promotion of the expansion of internal and interstate relations in the Commonwealth" - emphasized Igor Artemiev.

The purpose of the preparation of the Report was revealing the problems preventing the development of the market of passengers air transportations and preparation of the relevant recommendations on their elimination. At that, the authors of the Report proceeded from the idea that the securing of competition in this market was the basis for its development.

At preparation of the Report the international experience in the field of protection of competition in the market of air transportations, taking as an example the one of the European Union, has been investigated; the most typical cases on the infringements of the antimonopoly legislation in the given and the adjacent markets have been considered; the analysis of the state of competition on the most significant international routes between the states of the CIS has been conducted; the detailed analysis of intergovernmental agreements on air communication of the CIS countries for their conformity to the norms of the antimonopoly legislation has been realized.

The Head of the FAS Russia informed the members of the Council about a number of recommendations and proposals directed at the development of competition in the market of passengers air transportations of the CIS member-states, prepared in the result of the conducted research, including about the necessity of:

- separation of airport and transportation activity;

- introduction of competitive (tender) mechanisms of slots distribution between the airlines;

- development of competition in the spheres of jet fueling, technical supporting, processing of luggage, cargoes and mails, servicing on a platform, delivering of food, duty-free trading, parking, etc.,

- provision of the opportunity to airlines to carry out self-service in the specified spheres;

- provision of the opportunity of storage by airlines of their own fuel in the tanks of the fuelling companies;

- elaboration and introduction of rules of non-discriminatory access of airlines to the airports' and aero navigation services;

- creations of the conditions for expansion of low-cost transportations and development of business aviation, creations of equal competition conditions for air carriers (the control over the state aid);

- harmonization of air, taxation, customs, monetary, credit legislation, etc.

Mr. Igor Artemiev attracted the attention of the audience to the fact that at realization of the given recommendations the members of the ICAP have already elaborated and are realizing the Plan of operative measures which envisages, in particular:

- elaboration of the proposals to the draft model Law on Air Communication taking into account the norms of the antimonopoly legislation;

- holding of joint consideration of the cases on the infringements of the antimonopoly legislation on the most problematic routes, etc.

In the result of the Session the Council of the Heads of the Commonwealth of Independent States' Governments decided:

1. To approve the Report "On the state of competition in the markets of air transportation of the CIS member-states".

2. The Governments of the CIS member-states at realization of the Decision of the Council of the Heads of the Commonwealth of Independent States' Governments of November 22, 2007 on the basic directions of the development of civil aviation and measures on increase of safety of flights in the CIS member-states should take into account the conclusions and proposals of the given Report having as a goal the effective development of the market of passengers' air transportations in the CIS member-states.

3. The Interstate Council on Antimonopoly Policy (ICAP) and the Council on Aviation and Use of Air Space with the participation of the Interstate Aviation Committee must take measures on suppression of anticompetitive practices in the national markets of air transportations as well as on the development of competition in potentially competitive segments of the markets, that are adjacent to the air transportations markets, and to report on the results to the CIS Economic Council.