OREANDA-NEWS. November 27, 2009. The Office of the Federal Antimonopoly Service in the Khabarovsk region (the Khabarovsk OFAS Russia) found that "Avis-Amur" Airlines" Ltd. and "Vostok" Airlines" OJSC exercised concerted in breach of Clause 2 Part 1 Article 11 of the Federal Law "On Protection of Competition" (bid-rigging collusion), reported the press-centre of FAS Russia.

Earlier the Antimonopoly Office was asked by the Office of the Federal Security Service in the Khabarovsk region to organize an inspection of those air carriers. The petitioner informed that the airlines maintained prices in an open auction. The auction for flight execution on sanitary assignments to provide emergency medical assistance to the population of the Khabarovsk region in the first six months of 2009 was organized by the Ministry of Health Care in the person of the "Khabarovsk Regional Centre for Emergency Medicine" State Health Care Institution.

According to the materials presented by the ordering party, after the auctioneer announced the initial auction step (5% of the maximum price of the government contract - 43,362,750 Rubles), none of the three bidders at the open auction raised the ballots. In accordance with the statutory requirements, after announcing the initial auction step the auctioneer kept reducing the auction step by 0.5% of the maximum contract price.

When the auctioneer announced the auction step at 1.5% (44,960,325 Rubles), a representative of "Vostok" Airlines" OJSC raise the ballot and won the auction at the cost of one airborne hour 88,157.5 Rubles. The other bidder, "Avis-Amur" Airlines" Ltd., being present at the open auction, did not raise the ballot, which showed that the company was not interested in competing at the auction. Soon after the auction, "Vostok" Airlines" OJSC and "Avis-Amur" Airlines" Ltd. concluded a freight contract for an aircraft with the crew at the cost of 88,157.5 for an airborne hour to execute the government contract with Khabarovsk Centre for Emergency Medicine for flights on sanitary assignments, sharing its execution at the most profitable contract price.

Clause 2 Part 1 Article 11 of the Federal Law "On Protection of Competition" prohibits concerted actions of economic entities in the market, which lead to increasing or maintaining prices at tenders or auctions.

The Khabarovsk OFAS Russia issued a determination to "Avis-Amur" Airlines" Ltd. and "Vostok" Airlines" OJSC on inadmissibility of such actions that can prevent emergence of competition and can lead to restricting or eliminating competition in the market.

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The antimonopoly bodies have repeatedly discovered bid-rigging practices.

On 6th October 2009, the Altai Regional Office of the Federal Antimonopoly Service (OFAS Russia) established the fact of collusion between eight bidders in relation to a vegetable supply contract.

On 14th October 2009, the Tyumen OFAS Russian discovered a bid-rigging collusion between "SibUniversal" PKF" Ltd. and "Atlantis" Ltd. As a result of the bid-rigging, the auction brought minimum saving to the Tyumen regional budget. The government contracts were signed at only 0.5 % below the initial maximum price.

On 2nd November 2009, the Sverdlovsk OFAS Russia pronounced that bribing other bidders by the auction winner was a bid-rigging collusion. The Sverdlovsk OFAS Russia issued a determination to "Agroremstroi" Ltd., "Monolitstroi" Ltd. and "SPSMU-30" Ltd., requesting that in the future the companies must not enable concerted actions leading to not participating in competitive bidding.

Also in September 2009 FAS Russia initiated proceedings against the companies suspected in bid-rigging collusion in relation to a contract for supplying medications. The cases were scheduled for hearing on 18th November 2009.