Institute of designated air carriers in the EAEC interferes the reduction of tariffs

Almaty. February 16. Silkroadnews - «Acting in the countries of the Eurasian Economic Union Institute of designated carriers prevents the development of competition and reduction of tariffs for passenger", - reported the Deputy Director of the Department of antimonopoly regulation of the Eurasian Economic Commission (EEC) Alexander Kurilchik.
He stated that the price of air tickets directly depend on the number of designated airlines of aviation authorities on the routes.
So, on the route Minsk-Istanbul (distance 1436 km, 2 carrier) ticket costs 2.7 times more expensive than on the route Moscow-Istanbul (1764 km, 5 carriers). The difference in the cost of airline tickets for comparable distance routes comes to 40%.
According to A. Kurilchik, conditions for the development of competition in the air travel market between the Member States of EAEC will increase the number of air carriers operating on the same route. However, this is prevented by the restrictions imposed in intergovernmental agreements on air traffic, in particular non-transparent mechanism for assigning carriers.
As stated in the information, study of these issues will be newly established by ECE Working Group on the development of competition in the air travel market.
According to the EEC, major airlines in the market between the EAEC states are "Belavia" (26.3%), "Transaero" (24.8%) and Air Astana (24,1%).
In 2011-2013, Belarus and Kazakhstan had four cross-border route, 100% of services was provided by airline "Belavia". Between Belarus and Russia operated 13 routes, the largest share of the airline was carried by "Belavia" (69.3%) and "Aeroflot" (27.4%).
Between Kazakhstan and Russia there are 43 routes, major air carriers are "Transaero" (39.4%) and Air Astana (38,3%).