Cap on the price of flights, another face of the government.  What is happening?

Cap on the price of flights, another face of the government. What is happening?

The Italian government is also set to review the measure on maximum price limits for air flights imposed by the majority vote, after backing down on a tax on banks’ excess profits. dl property Which is now being amended by the executive itself. Amendment that eliminates the price cap (200% of average cost) and delegates powers to limit the use of algorithmsantitrust Which will verify any unfairness of the airline’s pricing, based on the principles of abuse of dominant position and anti-competitive agreement.

The conduct adopted on routes to the islands, periods of peak seasonal demand and prices 200% higher than average flight fares – it is written in the technical report – are considered circumstances and indications that the Authority may take into account.

Risk appeals

This measure will be the result of mediation between air carriers and the Trade Minister, Adolfo UrsoAfter Mimit’s table last Thursday and threats of route cuts and price increases Ryanair I easyJet, In recent days, technicians of the ministry have collected proposals from companies. Fears of a potential conflict with European competition rules weighed heavily on the price range, along with the well-founded fear that the stated appeal of low-cost companies would outweigh the strictures, which are now light in any case.

Antitrust powers

The antitrust will have the power to fine airlines with fines of up to millions of euros if it finds that the algorithms are used in “agreements that restrict freedom of competition” (i.e. cartels between carriers to drive up prices) or For “abuse of prominence”. Situation” (i.e. illegal modification of prices by a company).

The authority will always be able to intervene, but especially taking into account national flights to the islands during high season periods – when prices rise up to 200% – and other national connections in the event of a “national emergency”, That means road blockage and rail travel halted due to extraordinary events.





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