Russia: Competition watchdog to abolish airfare ticket system

Russia’s Federal Anti-Monopoly Service announced plans to abolish the current airline ticket reservation system in efforts to boost competition in the industry as it cracks down on current methods the FAS claims were forced into policy by foreign competition.

Reports say the FAS is looking to rid the nation of the current system and implement new rules that require airlines to reduce prices one or two days ahead of a departure date. FAS head Igor Artemyev announced the plans Wednesday, arguing that the current system, which was imported from the US and Europe, inflates airfare even when demand does not increase.

Sources say the regulator’s new proposals, however, will likely cost airlines money and will not likely reduce ticket prices for consumers, noting that if consumers are aware of a planned ticket markdown, airlines are unlikely to sell enough tickets beforehand.

Full Content: The Moscow Times

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