Tariff policy beyond the clouds

Tariff policy beyond the clouds

Those who fly from Kabardino-Balkaria or North Ossetia to Moscow know
that you can get from Nalchik to Moscow for 4, 000 rubles (around
$130), but from Vladikavkaz to the Russian capital costs 7350 rubles.
The distance from both cities to Moscow is almost the same.

The general director of the Vladikavkaz airport in North Ossetia Ruslan Kuzin explains this paradox. First of all, the cost of fuel storing is much higher in North Ossetia. The second reason is that large-tonnage planes of security, defence and law enforcement agencies spoil Vladikavkaz landing runways which then need repairs. The third is that Kabardino-Balkaria airlines need to decrease prices to attract clients. The fourth is that the level of service in North Ossetia is higher than in Kabardino-Balkaria. As for the level of service it's hard to agree: no public transport goes to the Vladikavkaz airport.

Three months ago, parliamentarians in North Ossetia decided to find out what air transportation prices consist of. The vice-speaker of parliament, Azamat Khadikov, said the following: "The average price of economy class air tickets is from 7 to 12 000 rubles in Vladikavkaz, and from 4 to 6 000 in Nalchik...The leaders of air companies DonAvia and Sibir were invited to talks, and after a serious conversation they promised to decrease tariffs...DonAvia has published a document where the following tariffs are given: economy class - 50 seats for 4, 5 000 rubles and 46 seats for 5 000. And business class - 12 seats for 12, 5 000 rubles. Sibir reported that from April 5th there is a web price of 4000 rubles and an extra charge which is about 5 000 rubles in total." "But not everybody has the Internet and a credit card," he said.

Meanwhile, according to Khadikov, Sibir didn't define concretely how
many tickets they would sell for such a price. In ticket office they
said very vaguely, maybe 5 or maybe 7, so in general it seems to depend on demand or on the cashier's mood.

How these prices are determined? Is there any leverage? They think in
Vladikavkaz that the Department of Transport and Federal Antimonopoly
Service should consider it because these companies are not
subordinated to the republic.


Tamara Bunturi, Vladikavkaz. Exclusively for VK.

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