DISCUSSION OF ARMENIA INTERNATIONAL AIRPORTS COMPANY'S
ABUSE OF ITS DOMINATING POSITION POSTPONED FOR ONE MONTH
17-10-2008 18:00:00 | Armenia | Economy
YEREVAN, OCTOBER 17, NOYAN TAPAN. At the October 17
sitting, the RA State Commission on Protection of Economic
Competition discussed the issue of Armenia International
Airports (AIA) company's abusing its dominating position. The
commission conducted studies in the aviation fuel market and
revealed that AIA sold aviation fuel at unreasonably high and
discriminatory prices. Then the commission initiated proceedings
within the framework of the work of the CIS Interstate Council
for Antimonopoly Policy.
It was stated at the sitting that in accordance with the
application that AIA filed in March 2008, the commission
established a reasonable difference between aviation fuel
purchase and sale prices: in case of purchasing a ton for 1,164
dollars, AIA might add 141 dollars during the sale, which was an
acceptable amount for the company as well. Under a decision of
the commission, any change in the price was to be considered as
unfounded.
By data published by the International Air Transport
Association (IATA), the average international price paid to
refineries was 1,106 dollars as of September 12, 2008, and 1,019
dollars as of September 26. By AIA's information, the sale price
of a ton of aviation fuel at Zvartnots Airport made 487,708
drams (about 1,625 dollars) in July. During the proceedings, it
came to light, the difference (margin) between the purchase and
sale prices of a ton of aviation fuel made 265 dollars in July
and 212 dollars in August - instead of the established margin of
141 dollars.
In the opinion of the commission experts, AIA has violated
the requirements of the commission's decision on establishment
of a margin, as well as abused its dominating position.
It was envisaged that at the sitting the commission will
make a decision on fining the company in the amount of 2% of its
2007's revenues, but not over 300 million drams. However, AIA's
representative asked the commission to give them time in order
to present additional arguments and reasons and to prepare for
the issue's discussion. The commission postponed the discussion
for a month.