Court Confirmed Decision of Khabarovsk OFAS on Vladivostok Avia
OREANDA-NEWS. February 21, 2012. The Federal Arbitration Court of the Dalnevostochny District upheld the decision of Khabarovsk OFAS Russia, that “Vladivostok Avia” OJSC had unlawfully used fuel mark-up transporting passengers on Khabarovsk-Niigata - Khabarovsk and Khabarovsk - Moscow - Khabarovsk routes, reported the press-centre of FAS Russia.
In 2010, the airlines additionally charged the passengers of the Japan-bound flights for the fuel: in February the fee was 456 Rubles, and in April increased to 1260 Rubles. At the same period the fuel fee for flying on the Khabarovsk - Moscow - Khabarovsk route was 600 Rubles. According to the airline, to purchase air tickets for these flights, on top of the passenger tariffs the buyers have to pay a fuel mark-up (YR fee), which is included in the tariff for air transportation and reflects intensive development of aviation fuel prices. However, “Vladivostok Avia” OJSC failed to submit documents establishing relations between the size of the fuel mark-up and the current situation on the market and competition environment.
Having studied the documents and information regarding changing prices for aviation fuel in the airports of Khabarovsk, Moscow (Vnukovo) and Niigata (Japan) and changing the fuel mark-up for transporting passengers on Khabarovsk - Niigata - Khabarovsk and Khabarovsk - Moscow - Khabarovsk routes in 2010, the Commission of Khabarovsk OFAS Russia concluded that the fuel mark-up does not reflect behavior of aviation fuel prices. In 2010 aviation fuel prices did not increase considerably (moreover, in 2010 prices in Khabarovsk airport decreased). All expenses for aviation fuel were already fully included in the airfare.
The antimonopoly body found that “Vladivostok Avia” OJSC violated Part 1 Article 10 of the Federal Law “On Protection of Competition”.
Khabarovsk Regional Arbitration Court, the 6th Arbitration Appeal Court and the Federal Arbitration Court of the Dalnevostochny District confirmed legitimacy of the conclusions made by Khabarovsk OFAS Russia.
“We believe this case constitutes a precedent for the Federal Antimonopoly Service and its regional bodies, as until now our colleagues have not exposed such violations. The ruling of the Cassation Court allows the antimonopoly bodies of the Russian Federation to analyze and research the situation on the market of air transportation in order to suppress similar violations by Russian air carriers”, commented Deputy Head of Khabarovsk OFAS Russia, the Head of the Antimonopoly Control Department, Mr. Nikolai Kostromeyev.