RESULTS OF INSPECTIONS OF AIR ASTANA JSC

The inspection carried out jointly with the agency for protection and development of competition and the prosecutor's office in relation to Air Astana has been completed.

As a result of the Audit, Air Astana was brought to administrative responsibility in the amount of more than 876 million tenge by the decision of the Specialized Interdistrict court for administrative offenses in Almaty for abuse of the dominant/monopoly rule, which was specified in the unjustified use of fuel fees.

When purchasing plane tickets on the day of departure or in the coming days, it was found that Air Astana unreasonably charged fuel fees from all categories of passengers in the amount of 3,500 to 6,500 tenge and practically adjusted the purpose and principle of its use at its discretion.

For reference: the fuel fee can be charged only in order to compensate for the increase in air fuel costs during the validity period of the tariff for transportation, when calculating which this increase could not be taken into account.

Air Astana airlines and the agency have developed antitrust compliance aimed at curbing prices in Monopoly/dominant directions on domestic routes, in particular, providing for the following tasks:

- first, the abolition of the use of fuel surcharges from December 6, 2023 (does not apply to tickets sold with fuel surcharges until December 6, 2023, regardless of the date of departure). Thus, the average ticket price for the Astana-Almaty route will be 24,435 tenge instead of the current price of 28,435 tenge (price reduction by 14%), the average price for the Almaty-Aktau route will be 31,078 tenge instead of the current 37,568 tenge (price reduction by 17%);

- secondly, limit the increase in prices for passenger air transportation services on domestic routes until the end of 2024;

- thirdly, this year and until December 31, 2024, the number of AirAstana tickets sold at medium and low prices should not be lower than 70% (that is, only 30% at booking class rates Y, B, H).

The agency also initiates the following systematic measures:

- At the initiative of the agency, the Ministry of transport, in order to expand access to the 5th degree of "air freedom", took measures to expand the ability of foreign carriers to carry out flights along routes at individual airports along with domestic airlines. This will encourage the arrival of foreign airlines, have a positive impact on competition and increase consumer choice;

- The agency initiated amendments to the legislation providing for the termination of the collection of fuel fees.  

Antitrust compliance