The government of Premier Giorgia
Meloni has reconsidered controversial new rules concerning air
fares on certain domestic routes, it emerged on Tuesday.
In an amendment to the so-called Asset decree currently before
parliament for conversion into law, the executive has eliminated
the price cap of 200% of the average fare and given the Italian
antitrust authority powers to verify possible abuses.
"The conduct exercised (by airlines) on the routes to the
islands, the period of peak seasonal demand, and prices that are
more than 200% above the average fare are considered
circumstances and indications that the Authority can take into
account," reads the technical report.
In a letter to the European Commission trade body Airlines for
Europe (A4E) contested the price cap, arguing that it could "set
a precedent and lead to a domino effect" as well as "violating"
the rights of companies to '"compete wherever possible, set
prices and define services as they see fit".
Ryanair CEO Eddie Wilson also blasted the measure, describing it
as "ridiculous, illegal and interfering with the free market,
according to European law" and later announcing a 8% reduction
in the air line's services to and from the Italian island region
of Sardinia this winter as a direct result.
However, ENAC President Pierluigi Di Palma said an "oligopoly"
had formed in the Italian domestic air-transport market.
"Particularly in the case of Ryanair, which has bought other
companies like Air Malta.
"It's clear there is a no longer a free market, but the
imposition of the price and little consumer protection," he
said.
Antitrust Authority President Roberto Rustichelli, meanwhile,
told a Senate hearing on the law conversion bill that the
measure did not hinder airlines' ability to "independently set
their price policies", adding that it appeared to try to impede
"illegal exploitation of market power to the damage of
particularly vulnerable consumers".
Photo: Antitrust Authority President Roberto Rustichelli
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