FAS SHALL TIGHTEN CONTROL OVER AVIATION FUEL SUPPLY

Approaching the summer season characterized by high demand, FAS instructed its regional offices in the Far East Federal District as well as in Krasnoyarsk, Irkutsk and Buryatia to tighten control over aviation fuel provision for air transportation.

The antimonopoly body focuses attention, particularly, on the cost of aviation fuel and services of operators at refueling complexes, non-discriminatory access to airport services, handling statements from individuals and economic entities.

“In the past 10 years the environment on the market of aviation fuel supply for air transpiration has changed considerably. Non-production intermediaries, whose actions unreasonably increased prices for aviation fuel, were removed from the logistics of aviation fuel supply. As a result of FAS efforts to develop competition and suppress and prevent violations of the antimonopoly law, favourable performance conditions on air transportation market were formed. Air carriers are able to choose suppliers of air fuel and the services for aviation fuel provision”, informed Deputy Head of FAS Anatoly Golomolzin.

He added that “competition advocacy, implying various measures designed to develop markets and market mechanisms, play the key role in the work of the antimonopoly bodies. One of such mechanisms is developing on-exchange trade with aviation fuel; its infrastructure has shaped in recent years”.

He pointed out that when there are no conditions for competition, requirements are set for non-discriminatory access to airport services, particularly, refueling companies. In the absence of competition, the Government regulates tariffs for the services of airport operators, for instance, refueling and air fuel storage – the field with high risks of discriminatory conduct of market participants.

FAS applies antimonopoly remedies to the persons who violate the antimonopoly law both upon considering complaints and statements filed to FAS and upon the agency’s own initiative.

For instance, FAS and its regional bodies opened and investigated antimonopoly cases against air fuel suppliers and airport operators in the European part of Russia as well as in Siberia, Far East and the extreme North, including Krasnoyarsk, Khabarovsk, Irkutsk, Petropavlovsk-Kamchatsky, Trans-Baikal regions. The violations concerned actions of aviation fuel suppliers, refueling operators for fixing fuel prices, providing access to the services of aviation fuel storage and aircraft fuelling, preventing market entry of alternative operators.

The efforts are ongoing. For instance, Sakhalin OFAS has opened a case against fuel-and-refueling complex operator in Yuzhny-Kurilsk airport upon elements of violating the antimonopoly law in the part of fixing monopolistically high prices for aviation kerosene.

“Developing regional and local air traffic, eliminating entry barriers to the markets of services in this field is a priority task for the antimonopoly bodies, and actions of economic entities on the markets of regional airport services are watched carefully”, emphasized Deputy Head of FAS.