They will establish a scheme of air fare bands for flights in the country

They will establish a scheme of air fare bands for flights in the country

The application of maximum rates in internal commercial air transport services “It avoids both situations of tariff abuses by protecting users” as well as “any type of economic speculation based on obtaining excessive returns after applying predatory practices that impair the provision of this public service”, indicated the decree.

The measure was made available after an analysis of the balances presented by the transport companies that operate regular services with free ticket sales, which showed that “the economic result of all companies is negative.”

This “It indicates that the income from aeronautical activity has not been enough to cover its direct and indirect costs, for several years, as a result of the setting of predatory rates, which led to the collapse of the system.”

In addition, the impact of the pandemic on air transport was observed with “devastating effects on the sector” and that “in this conjunctural framework the commercial air companies that operate in the cabotage and international system were deeply affected”.

“The excess supply in a market depressed by the pandemic and the existence of rates that do not adjust to the operating costs of the companies can cause the existence of predatory market rates, likely to lead to a absurd competition with non-compensatory values, which, in turn, can prevent commercial exploitation from being carried out safely and profitably, for a reasonable period, “he added.

In this context, it was resolved that “It is convenient to regulate the reference rates and the rate bands that serve as a framework for determining the prices to the public of the services provided by the regular operators of internal passenger air transport, in order to make them compatible with the current level of the costs of the activity “.

Source From: Ambito

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