Motivation for action to increase prices: the reason for the imminent rise in airfare is revealed

Incitement to action to raise prices: the reason for the imminent rise in airfare has been identified

The original “warning” was voiced by the Federal Antimonopoly Service. According to RBC, the head of Vnukovo, Vitaly Vantsev, received a warning from the Federal Antimonopoly Service: the reason is “in connection with a public statement about an increase in airfare prices.” According to the FAS, these words may encourage airlines to raise prices.

The essence of the matter is this: in an interview with RBC the day before, on Thursday, Mr. Vantsev, answering the question of what kind of increase in airfare prices can be expected this year in connection with the abolition of subsidies, he stated, among other things, the following: “There will be an increase in the order on domestic flights 15–20%, and up to 40% on international ones,” he said. At the same time, he literally added that “it is not necessary to treat this as if the airlines are fucking taking advantage of the situation” – they have their own problems associated with rising maintenance costs and air sanctions. Also in the same interview, he added that if the aviation industry had not been subsidized in 2022, ticket prices would have doubled last year, this trend was visible, but it was possible to “extinguish” it.

As a result, literally the next day there was a reaction from the FAS: the “antimonopoly” decided that these words would encourage airlines to raise prices. “Such statements can be perceived by companies as an incentive to act to raise prices,” RBC quotes what was reported in the FAS. In Vnukovo, the publication noted that they are aware of the FAS warning, but there will be no comments on this matter.

RBC and the commentary of officials cite the assessment of the co-owner of Vnukovo. Deputy Transport Minister Igor Chalik assured that affordable ticket prices remain in Russia. “The growth in the weighted average actual cost of a ticket on the domestic route network in January-May 2023 compared to the same period in 2022 averaged 6.2%, or 420 rubles,” he said. At the same time, he added that prices traditionally rise in summer, “because airlines need to compensate for the lost profits of the low season,” but without “anomalous jumps.”

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