One-Way Ticket Costs Up to 357,000 Drams: Why is 'Aeroflot' Offering Predatory Prices in Armenia? Hakob Jagharyan

Former advisor to the Prime Minister of Armenia, Hakob Jagharyan, wrote on his Facebook page:

“PREDATORY PRICES IN AVIATION

In the last 2-3 days, it has become evident that the Russian airline, Aeroflot, is offering PREDATORY prices for flights from Yerevan. Facebook users have shared photos showing one-way tickets costing up to 357,000 AMD...

I inform you that this is happening due to the absolute inaction of the Armenian aviation authorities.

I should also mention that international regulations address this situation, providing measures to prevent large companies from monopolizing the entire market or a segment of it. They offer relevant functions aimed at protecting the economic interests of the country and the right to free movement of passengers.

Below, I present an excerpt from ICAO doc. 9626, section 4.3, which is titled 'PREDATORY PRICES' (page 140). There is also a whole document, ICAO doc. 9587, dedicated to tariff regulation.

I would add that prices are considered PREDATORY not only due to their high cost but also due to their low cost. The latter is used to drive competitors out of the market.

However, this does not diminish the rights of any country to regulate air transport tariffs and the obligations to regulate its own market.

In such cases, the Armenian Aviation Authorities (if they exist) are entitled to REMOVE the predator and prohibit that company from entering the territory of a sovereign state, as neighboring Georgia has done.

The State Commission for the Protection of Economic Competition and the Public Services Regulatory Commission also have roles to play. But the main actor here should be the Civil Aviation Committee.”