The problems of competition in the airline industry were the subject of the second bulletin of the Analytical Center on the development of competition

5 november 2013

An overview of the news related to significant events in the field of competition in Russia and abroad is presented in the bulletin prepared by the Directorate for Competition Policy of the Analytical Center. The experts focus on competition between air carriers.

The seventh report of the Federal Antimonopoly Service notes that the current problem in this field is the competition in the markets of jet fuel and fueling services for aircraft. However, according to the experts of the Analytical Center, the high cost of aviation fuel is not the only problem in passenger air travel. In their opinion, the limited access by the carriers to necessary airport infrastructure and restricted access of foreign carriers to the Russian air transport market is also a problem.

Thus, the experts recognize that competition is not always a guarantee for the industry’s development. For example, in the regional traffic segment, it may even be harmful, at least in the first stages of the market’s formation.

More details can be found in the bulletin “Problems of Competition in the Airline Industry”.