Airline companies file a lawsuit against the Federal Antimonopoly Service (the FAS) for accusation of price-fixing arrangement

"S7 Airlines" and "UTair" filed lawsuits against FAS  which threatens to impose severe fines.

Airline companies “UTair” and “S7 Airlines” challenged the instruction by the FAS which accused the airline carriers of price fixing during the sale of airline tickets for flights ‘Moscow-Irkutsk'.  The airline companies do not only seek to avoid the penalties but also try to prove their right of flexible price arrangement.

The Head of Competition Regulation Practice in ART DE LEX Law Firm, Yaroslav Kulik explains that the arbitration proceeding is more advantageous for the companies since the central office of the FAS does not provide a full appeal, thus the petitions are viewed in private, other than in adversarial procedure.

Cartel is the most dangerous violation of competition law. The perpetrator is imposed with turnover-based fine which may turn out to be much enough, - underlines Kulik.

Moreover, the expert points out, this is the way how the companies protect their reputations.