Two Reasons for Increase in Air Ticket Prices from Armenia to Russia

The State Commission for the Protection of Economic Competition of Armenia reports that there are two reasons for the increase in air ticket prices from Armenia to Russia. According to a post on the official Facebook page of the commission, it has conducted a study in this area on its own initiative.

The issue arose after Russia opened its borders to Armenian citizens on February 1, provided that they have a negative coronavirus test. However, Armenian citizens have been complaining that the prices of air tickets have significantly increased.

According to the Commission, the increase in air ticket prices is due to the economic factors analyzed by digital automated systems used by major foreign airlines. On the other hand, it is also related to the significant demand caused by the consumption of cheaper tickets offered by “Armenia Aircompany” LLC.

Specifically, according to the information provided by the resident company “Armenia Aircompany,” the demand for tickets sharply increased in connection with the opening of Russian air borders to Armenian citizens on February 1, 2021. Consequently, the low-priced tickets available in the electronic sales system, which are classified by ascending order, were almost completely exhausted before February 1, and only business class tickets have been available for sale since then, the statement said.

Regarding the resident companies of the Russian Federation, the Commission reports that monitoring their activities falls outside the powers assigned to the commission by law and is under the authority of the Eurasian Economic Commission. However, since the commission has previously dealt with the phenomenon of rising air ticket prices, it has sought to clarify the mechanisms for price formation of tickets and the reasons for price increases through its partners in the EEC.

It has been recorded that airlines use revenue management software applications for the effective application of fare subcategories. Airlines independently define fare groups, within which several subcategories may be established. Revenue management programs include the distribution of aircraft seats for flights in selected directions according to fare classes, determining their price based on the flight direction, and so on. Additionally, airlines also use software for reservation, sales, seat distribution, ticket electronic registration, baggage registration, and more. Moreover, these programs are automated and are almost free from human influence.

It should be noted that from February 1 to March 1, there will be a trial program that allows travelers to cross the state border between Armenia and Russia and vice versa with the presence of a negative coronavirus test result (maximum 72 hours old). The program “Travel without COVID-19” has been launched; it allows individuals to have the results of their submitted Covid-19 test in the form of a QR code in a mobile application.

It is necessary to approach a laboratory conducting PCR tests participating in the program with a passport and take the Covid-19 test. The test result will immediately reflect in the application when the laboratory inputs the answer into the system. In the case of a positive result, the QR code will turn red, and in the case of a negative result, it will turn green. When crossing the border, it is necessary to present the QR code from the mobile application.