Regional carrier is found not to have abused its monopoly in the region and that the hikes properly reflect increased costs (240 words)

Published: 11/8/2001

Yamal Airlines, operating in Russia's north, has been the subject of an investigation by the Russian Anti-Monopoly Ministry, after recent rises in ticket prices. The Western Siberian representative of the ministry said the investigation was prompted by the fact that Yamal has a monopoly on its routes: a characteristic it shares with many of the country's regional carriers. The ministry is reported to have found that the rises did not exploit the airline's monopoly. According to Yamal, it decided to increase prices after 1st November to reflect higher airport fees, ground service charges, aircraft maintenance cost increases and jet fuel prices. Price hikes ranged from 4-15% on routes from Salekhard to Moscow, Tyumen, Norilsk, Noyabrsk, Novy Urengoi and Nadym, to 30% between Salekhard - Ekaterinburg, its highest cost route. Based in Salekhard, Yamal Airlines was started in February 1997 by the Governor of Yamalo-Nenets Autonomous District as an open joint-stock company to lower the cost of air travel to the region's inhabitants. The airline is 79% owned by the administration though the regional property fund. Reports have recently suggested that Yamal may be a target for super regional Tyumenaviatrans which, with the encouragement of Tyumen Region Governor Sergei Sobyanin, is reported to be interested in acquiring airlines in the surrounding regions.

Article ID: 2895