OREANDA-NEWS. November 15, 2012. The 16th Arbitration Appeal Court confirmed legitimacy of the fine – 1,763,854 Rubles imposed upon Dagestan OFAS Russia upon “Dagestan Airlines” OJSC, reported the press-centre of FAS Russia.

The case against “Dagestan Airlines” OJSC was initiated upon petitions from tour operators – “Kruiz” Ltd. and “Izumrud” Ltd. that the airlines had concluded an agreement with “Sirius” Ltd. for providing a block of seats (139) for passenger transportation on a regular flight on the Makhachkala – Istanbul – Makhachkala route (80% of the aircraft capacity), which had restricted entry of other tour operators to this route.

The Office of FAS in the Republic of Dagestan found that “Dagestan Airlines” OJSC violated Part 1 Article 10 and Part 1 Article 11 of the Federal Law “On Protection of Competition” (abusing market dominance and concluding competition-restricting agreements) and fined the air carrier 1,763,854 Rubles.

The airlines challenged the fine at Dagestan Arbitration Court but the claim was dismissed. The airlines disagreed with the conclusions made by the Court of first instance and lodged an appeal to the 16th Arbitration Appeal Court, which also upheld the judgment of Dagestan Arbitration Court confirming legitimacy of the decision and determinations issued by Dagestan OFAS Russia.

The Head of Dagestan OFAS Russia Kurban Kubasaev commented the Court ruling: “Dagestan OFAS Russia lawfully held “Dagestan Airlines” OJSC administratively liable. By concluding the agreement that was contrary to the antimonopoly law, the companies infringed not only the rights and interests of the tour operators but also citizens’ rights and interests. The Courts of two instances confirmed legitimacy of the fine imposed by OFAS upon the air carrier”.