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FAS Russia questions transparency of flight ticket pricing | Realnoe Vremya

The head of the Federal Antimonopoly Service (FAS) of Russia questions the fact that the pricing of flight tickets depends on automated systems

”We have definitely established that it is not automated”
A careful look of the Antimonopoly Service turned to the airlines. The head of the FAS Russia, Igor Artemyev, at the ”government hour” in the Federation Council stated that, in his opinion, ticket price increase depends not only on electronic systems but also people who lead this price formation.

”All airlines, from Aeroflot to others, say that this machine automatically sets price depending on increased demand. We have definitely established that it’s not automated, and these algorithms are set manually, and the creator is not a robot,” Interfax quotes his words.

He called significant increase in ticket prices in anticipation of major events unfounded.

”Has this robot gone nuts or what? No, it is people running it yet, focusing on very abstract idea that demand increases by some strange values, and I think it’s not founded or it is justified to a small extent,” said the head of the FAS. The antimonopolists are planning to adjust the price formation algorithms together with the airlines.

Prices start dancing

The concerns about a significant growth in prices for the World Cup have turned out to be premature. If in November, when it was launched the second phase of ticket sales for the competition, the cost of airfares soared up, now it dropped again to the average values. For example, according to Aviasales, on the day of the quarterfinals (July 6), a flight from Moscow to Kazan and back increased by 42%, up to 9,058 rubles, but now the online aggregator shows tickets for 5,880 rubles (the flights from July 6 to July 8, there and back).

The traveling service tutu.ru confirms this data. According to the statistics provided to Realnoe Vremya, in September 2017 the average flight cost from Moscow to Kazan in one direction was almost 11,000 rubles, in January the price dropped by 72,28% to 3,678 rubles.

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FAS Russia questions transparency of flight ticket pricing — RealnoeVremya.com.