On 25th September 2008, the 9th Arbitration Appeal Court sustained the judgment of the Moscow Arbitration Court of 17th July 2008 that the Federal Antimonopoly Service (FAS Russia) lawfully dismissed the petition of «UTair» Airlines» Ltd. on buying 49% shares of «Roshcino Airport» OJSC.
«UTair» Airlines is one of largest air carriers in the Russian Federation focused mainly on the Tuymnen region. «UTair» Airlines» Ltd. offers services for regular air transportation, while «Roshcino Airport» OJSC provides airport and ground handling of the aircrafts. These goods markets are mutually dependent.
FAS Russia concluded that the company had dominant position in air transportation from «Roshcino airport, and by acquiring airport assets it will be able to strengthen its overall market position. Even if the air carrier does not control activities of «Roshcino Airport» OJSC, it will be able to leverage its decisions.
Upon the transaction, «UTair» Airlines» Ltd. will be able to push the existing competitors out of the market and restrict the entry of newcomers, which would strengthen the position of the Airlines on the market of regular air transportation and adversely affect competitive environment on the goods market in question.
The air carrier disagreed with the FAS Russia's decision and filed a claim to the Arbitration Court, which confirmed the rightness of the FAS Russia's position. «UTair» then filed a suit to the Appeal Instance, but the Appeal Court sustained the FAS Russia's decision.
