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Air Astana faces $15mn fine over ticket prices

On June 8, the Specialized Administrative Interdistrict Court of Almaty imposed an administrative fine of 6.7 billion tenge on Air Astana, Turanews.kz reports.

According to the results of the inspection, the facts of abuse of the dominant position in the air transport market were revealed in the activities of Air Astana, and it was found that the fuel fee was unjustifiably charged for each air ticket.

However, the court decision has not entered into legal force yet.

Meanwhile Air Astana intends to appeal the fine of the Agency for Protection and Development of Competition of the Republic of Kazakhstan in the amount of 6.7 billion tenge.

Regarding the information on the imposition of an administrative fine on Air Astana JSC for abusing its dominant position in the air transportation market, the Press Service of the Airline made a statement as follows: “From the day of its foundation, the airline operates in accordance with the legislation of the Republic of Kazakhstan. Numerous investigations and checks of the airline regarding the establishment of monopolistically high prices did not reveal any violations in the work of the carrier. The offense imputed by the Agency relates exclusively to the collection of fuel surcharges and is unfounded,”

Recall that in April Kazakhstan’s Agency for Protection and Development of Competition has initiated court proceedings that could enforce fines totalling KZT6.7 billion tenge (USD15 million) on Air Astana , accusing it of abusing its dominant position in the market to charge unreasonably high prices for air tickets.

TuraNews

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