FAS CONTINUES ANALYSING PRICING ALGORITHMS FOR AIRFARES

The second stage of analysis focuses on the dynamics of prices for more than 200 routes in 2015 – 2018

Earlier FAS established that the role of systems in pricing is limited by statistical collection and demand forecasting, and the calculations are controlled by tariff analysts of airlines. The finds are reported to the Government of the Russian Federation.

At the new stage, special attention will be paid to registering sharp deviations from the average economy airfare and the rules of applying tariff subclasses that frequently make the fares significantly more expensive.

As part of the monitoring, FAS will continue watching airfares to the resort areas, the Far East, Kaliningrad and Norilsk to ensure affordability of air transportation for the population of Russia.

For example, the Antimonopoly Service analyzed Moscow-Simferopol-Moscow and Moscow-Sochi-Moscow routes and found that 13 air carriers serve direct regular flights from Moscow to Crimea, “Aeroflot” controls 25% market share and “Rossiya” - 10%.

On the Moscow-Sochi-Moscow route “Aeroflot” has 23.8%, and “Rossiya” – 8.4%. 17 air carriers serve direct regular flights on this route in 2017.

Thus, no airline has the dominant position on the markets in question; airfares are formed in the competitive environment*.

Among measures with a positive effect upon affordability of Crimea vacations is end-to-end passenger transportation by air and motor transport. On 1 June 2016 bus service is opened between Anapa airport and Crimea. Passengers fly to Anapa and can travel to Kerch, Feodosia, Yalta, Simferopol, Sudak using a single travel document.

*The average roundtrip economy airfare of different airlines to Crimea in 2017 departing from Moscow was ranged from 9 561 to 11 193 RUB. In view of the seasonal nature of the route in some days of the summer season, economy fares may reach 30,000 RUB.

The average roundtrip economy airfare to Sochi in 2017 was minimum 7 922 RUB and maximum 13 128 RUB.