Categories: policy

Russians “pleased” the sharp increase in prices for flights “Victory”

Airline-loukoster “Victory”, part of the Aeroflot group, announced a significant increase in prices for tickets to Russia from abroad, as from 28 October, the rate will include the cost of registration services in foreign airports.

As explained in the press-service of airline “for the execution of the decision of the Moscow city court”, the airline forced “to include in the tariff the cost of registering customers in foreign airports.”

“With the winter schedule, which will begin October 28, 2019, “Victory” will increase by 25 euros ticket prices for all flights from foreign airports”, — quotes RIA “news” the statement of the low-cost airline.

We will remind that earlier in October, the Moscow city court declared illegal the paid registration at the reception Desk at airports abroad for passengers of budget airline “Victory”. Thus, the court supported the demand of the capital, interregional transport Prosecutor’s office (ISCP). She felt such a levy illegal, and in December 2018 has filed a lawsuit in court. The company’s representatives tried to convince the Ministry to introduce similar rules (free registration online and pay at the front of the airport) for flights from the Russian airports.

The newspaper “Vedomosti” called one-time increase in average ticket prices by 40% unprecedented.

In turn, the representative of the carrier Elena Selivanov reminded the publication that in 2018 rose sharply aviation fuel, and expenses of the airline rose more than 30%. The fee for registration provided the opportunity to reduce the cost of airport services.

Note also, in mid-August, the Federal Antimonopoly service (FAS) of the Russian Federation proposed to give the “Victory” in private hands, saying that he needs to develop flights within the country or otherwise leave the group “Aeroflot”.

“Failure of the low-cost airline from domestic routes to international — two steps back. Staying in the Aeroflot group, Pobeda should develop in the country. Or leave the group “Aeroflot” and compete with it”, pointed out Deputy head of FAS Alexander Redko.

In turn, the head of the Antimonopoly service Igor Artemyev has sent the Minister of transport of the Russian Federation Yevgeny Dietrich and Deputy Prime Minister Maxim Akimov, who oversees the transport sector, the letter a proposal to privatise the airline for the development of domestic passenger transport and competitive market.

In a letter to the head of FAS pointed out the desirability that the transportation Ministry and Aeroflot, which occupies a “dominant position” in the market in the allocation of international routes made a decision in relation to the development strategy of “Victory”, “the government needs to ensure the accessibility of the population in domestic airlines”.

While Artemyev called for the development of domestic services “Victory” and not international destinations. According to authorities, the revenue yield on routes “Victory” on average, 10% lower than the market (calculated from the cost of seat kilometre, RASK). The presence of low-cost carrier on the route increases competition and reduces the prices of the tickets of all the carriers, the head of the Antimonopoly service.

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