Vladimir Putin instructed to clear up with air ticket prices

ArmInfo. President Vladimir Putin, on the proposal of the Federal Antimonopoly Service (FAS), ordered to deal with the automated system of pricing for air tickets. Russia is the main aviation destination for Armenia, and Russian airlines enjoy a dominant position in the air transportation market of the Republic of Armenia.

The head of the FAS Igor Artemyev drew attention to the situation with the prices for air tickets during the meeting on the development of transport infrastructure, RIA Novosti reported. The head of the FAS told the president that Russian airlines had previously imported from the US and Europe special computer-based dynamic pricing systems that set tariffs for tickets depending on demand. At the same time, in his opinion, the work of these algorithms is the result of collusion between the world's air carriers. In this connection, Artemyev suggested studying this system in order to stop the unmotivated rise in prices for air tickets. "I completely agree with you, I definitely have to completely understand what is happening there, I know about these computer systems, which set prices themselves," Putin said.

According to the online booking of Aviasales.ru air tickets, prices in 2017 decreased slightly in almost all directions entering the Moscow top 20. The only exception is tickets to Yerevan. So, if in comparison with last year tickets in practically all directions have fallen in price, in the case of air tickets to Yerevan the situation is different. It is noteworthy that almost three thousand rubles fell in tickets to Tbilisi and back, to Bourgas and back, almost five thousand less will have to pay for the flight to Tivat and back. However, it is much more expensive than last year, only a flight to Yerevan costs 17.184 rubles for a round-trip ticket versus 13.484 in 2016. Other serious price increases on popular destinations in Aviasales.ru are not noted.

Meanwhile, Russia is the main aviation sector of Armenia - only 14 flights are operated daily to Moscow airports and back. It is not difficult to guess what kind of competition has developed in this direction.  However, after October 23, 2013, when the Armenian government approved the "Program to ensure the provision of competitive and long-term air transportation services in Armenia", the national air carriers of Armenia ceased their activities. As a result of Open Skies policy and effective implementation of the program, in comparison with the current situation over the next 3-4 years, it was expected to provide additional GDP of $ 0.3-0.4 billion, creation of 18,000-23,000 new jobs, mainly in Air travel and tourism, an increase in the volume of passenger transportation by 20-25%, and a decrease in ticket prices of about 10%. In fact, the Armenian market of air transportation lost its national carrier, as Armenian airlines were not ready for such competition and found themselves in a position "out of the game". As a result, Russian airlines began to dictate their "rules of the game" by raising the prices for air tickets. Many citizens of Armenia started using aviation services of neighboring Georgia. The Armenian consumer also did not wait for the promised reduction in prices, since it is already usual to force-majeure events at the Upper Lars checkpoint or after the summer holidays, when Armenians should return to Russia, the prices for air tickets have traditionally skyrocketed.