The measure, established by the Government last week through Decree 879/2021, returns to fix maximum rates and a system of rate bands for domestic flights, and ordered the Ministry of Transportation to determine the bands within a period no longer than 180 days.
The rate ceiling had been eliminated by the previous administration in January 2016, while the floor was repealed in August 2018.
The application of the tariff bands, the decree bases, is based on an analysis that showed that “the economic result of all the companies is negative”; and seeks to avoid “situations of rate abuse” as well as “predatory practices” and “economic speculation” in the market.
Along the same lines, Ceriani ratified the measure and argued that it is “a way of putting rationality in the market and allowing airlines to operate in a much more sustainable framework from a financial point of view.”
“What it is going to do is preserve the finances of the companies. It will be to the benefit of the industry in general and, obviously, of the ‘low-cost’ in particular “added the CEO of the state airline.
After which, Ceriani described the market situation during the government of Mauricio Macri as a “real calamity”, and affirmed that “many companies stopped operating because there was a tariff war between them.”
“When we received the company in 2019 it was in a very bad situation with a very high deficit. The management of Cambiemos increased the deficit of Aerolineas Argentinas ”, said the head of the flag line.
In addition to the elimination of the tariff bands, the previous administration introduced other changes in the commercial aviation regulation, from which permits were granted to new airlines to operate in the cabotage market, including companies with a “low cost” business model such as FlyBondi and Jetsmart.
Ceriani described José Luis Espert’s statements as a “provocative speech devoid of all meaning,” and indicated that States uphold their flag lines, especially in the context of a pandemic.
“It goes against what is happening in the world. The governments of the countries, especially the developed ones, what they do is precisely support their airlines because it is an essential and necessary service ”, answered Ceriani.
After that, he added: “These people are unaware that there is a pandemic and obviously they are not trained to govern the country because they have no idea what they are talking about.”
Source From: Ambito
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