Chaos

19/10/2005 Armine AVETYAN

There was a case of antimonopolistic agreement registered in the airline ticket sales market of Armenia. This agreement was reached between “Tower Travel” (representing “Fly Air” company of Turkey in Armenia) and “Bagrat Tour” travel companies. According to the agreement between these two companies, “Bagrat Tour” pays $50 USD from each airline ticket for the Yerevan-Istanbul-Yerevan route. The antimonopoly commission approved this fact but didn’t give any details concerning concrete agreements. We tried to ask these two companies concerning this information. The director of “Bagrat Tour” Bagrat Navoyan didn’t agree to answer to our questions. “You shouldn’t ask me about that, you should ask those people wh gave you that infromation”,-said Bagrat Navoyan. We called “Tower Travel”, a lady picked up the phone and said: “Bagrat Tour”. We asked her what kind of relation they had with “Bagrat Tour” and she said that these two offices belonged to the same company. It turns out that these two companies separately or together represent “Fly Air” company in Armenia. The antimonopoly commission promised to inform which one of these parties had created antimonopoly situation in the travel market. It is worth to mention that “Bagrat Tour” is also a travel agency and serves the travel groups visiting Turkey. Mainly people visit Turkey for trade purposes. We tried to find out the travel expenses for this route from “Tower Travel”. “Yes, we have four flights a week. The roundtrip ticket price is about 270 USD. But in case when there are a lot of free seats and there aren’t many flights, the ticket price may increase”,-said the lady working at this company. Accordingly it turns out, that the company has a fixed price for the flight and they share the total price between the number of existing passengers for that moment and thus manage the ticket price. It is logical that the ticket price is different for different flights. And according to this logical principle, the roundtrip ticket for Yerevan-Istanbul-Yerevan travel route once may cost 270 USD, the next day 300 USD and definitely one day the price may increase up to 400 USD.