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RIA Novosti

Business

Russian president urges antitrust action on aircraft fuel prices

19:52 16/10/2008
GORKI (Moscow Region), October 16 (RIA Novosti) - President Dmitry Medvedev urged the Russian government Thursday to take drastic antitrust measures to curb high aircraft fuel prices.

"I order the government to completely clarify through antitrust regulations what is going on in the sector, what price collusion there is, what the problem is, and take decisive action under antitrust regulations," he said at a meeting with government members and bankers outside Moscow.

"I will give corresponding orders to law enforcement bodies. The situation cannot be tolerated any longer," he said.

Deputy Prime Minister Sergei Ivanov said at the meeting that the government had proposed that air carriers be provided with state loans to buy fuel and be allowed to put off paying import duty on foreign passenger aircraft for six months.

"This is outlined in the Tax Code, this is legal and possible. It will allow airlines to upgrade their fleets of aircraft," he said.

"The measures, as well as a number of others, have been prepared and worked out by the government. If I may, I would ask the measures be supported, because they would reduce the pressure felt by virtually all airlines," he said.

The high cost of aviation fuel has recently hit airlines across Russia, including the AiRUnion alliance, which collapsed under a mountain of debt in September after inflicting delays on thousands of passengers as it struggled to pay for fuel.

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RIA NovostiRussian president urges antitrust action on aircraft fuel prices

19:52 16/10/2008 President Dmitry Medvedev urged the Russian government Thursday to take drastic antitrust measures to curb high aircraft fuel prices. >>

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