He added that “throughout history, on two occasions a relaxation of minimum rates was allowed, which unleashed a price war studied worldwide because it culminated in the disappearance of practically all the companies involved.”
“Not allowing the indiscriminate sale of fares below the operating costs of flights provides sustainability to the entire air transport system, preventing it from running at a loss, and deteriorating the financial situation of companies, putting jobs at risk. work, lack of provision of services and connectivity, as has been experienced so many times in the national commercial aviation history, “the official remarked.
He affirmed, on the other hand, that “it is also required to protect the user from the extremely high rates that companies may charge if they have a monopoly position on a certain route. The upper limit of the band avoids abusive prices and economic speculations based on in obtaining excessive returns “.
The Government ordered that maximum rates and a system of rate bands be re-established for regular internal commercial air transport services, through decree 879/2021 published in the Official Gazette last Friday.
According to the norm, the Ministry of Transportation must determine the rate bands for domestic flights within a period of no more than 180 days.
The measure was made available after an analysis of the balance sheets presented by the transport companies that operate regular services with free ticket sales, which found that “the economic result of all the companies is negative.”
Source From: Ambito
David William is a talented author who has made a name for himself in the world of writing. He is a professional author who writes on a wide range of topics, from general interest to opinion news. David is currently working as a writer at 24 hours worlds where he brings his unique perspective and in-depth research to his articles, making them both informative and engaging.
