FAS APPROVED COMMERCIAL POLICY OF “AEROFLOT” PJSC

Adopting the document will increase transparency of the airline’s operation for the regulator

As a result of collaboration, FAS and “Aeroflot” PJSC elaborated a common approach to economy airfares in view of the norms of the antimonopoly law. Its commercial policy describes the pricing algorithms exclusively depending on the market conditions, first of all, demand, without references to the carriage costs.

All passengers at the same period of time have equal opportunities to buy air tickets at the same prices. At the same time, there is a possibility to choose such tariff group that includes the carriage conditions necessary for passenger and, therefore, do not pay for unused services.

Air fares are dynamic; they change in course of time, depending on demand, in such a way that on average 70% - 80% seats are sold at the prices below the prime costs. It makes carriage available in terms of the price criteria for most passengers with different income levels. Sale of the remaining seats closer to the departure date at higher prices enables carriage in terms of the seat availability for business passengers and the passengers that need to fly at a particular time / on a particular date and did not purchase tickets in advance. The combination of 70-80% cheap and 20-30% expensive airfares creates conditions for flight recoupment for the airline providing commercially-viable services.

If demands decreased and there is a risk of aircraft underloading, prices can go down even closer to the departure date. This measure enables to continue the work on increasing the seat occupancy rates on flights (from the actually achieved high level at 80% (in an average year) to even higher values) and, therefore, enhance the economic efficiency of using the airline fleet.

Adopting the commercial policy by “Aeroflot” PJSC along with provision of the exhaustive data array on monitoring airfares in FAS Unified Informational Analytical System ensures transparency of airline operators for the regulator in accord with the principles specified in the document, while observing the requirement to keep business secrets.

Regional OFAS will continue working with complaints from individuals in case of sharp airfares changes, in view of an analysis of the state of competition on particular domestic routes and with use of the database of price monitoring.