Ryanair’s hard fist on flight prices is getting its results. The clash between the Italian government and the airline seems to have reached a crucial point. Also concerned by the objections of the European Commission, the government is rethinking the decisions taken to date, making a substantial U-turn.
In fact, in these hours the executive is preparing an amendment to Minister Urso’s decree which attempted to impose a maximum price on tickets, in particular for trips to Sardinia and Sicily, and from the two islands. According to what was reported by Sole 24 Ore, the government’s amendment will be presented in the Industry Committee of the Senate, where the Urso decree is examined for conversion into law.
In 90 seconds, expensive flights decree: why Ryanair threatens Italy
The amendment should eliminate the prohibition on “dynamic pricing in relation to booking time”. In essence, the government would delete the point that the airlines most dispute. The companies would thus regain full freedom to lower and (above all) raise the price as consumers make their reservations.
In the new formulation, the decree would limit itself to strengthening the powers of the Antitrust, which already protects consumers and opposes abuses of dominant positions by companies.
Urgent measures
The Antitrust may initiate proceedings (against the carriers) if the price of tickets rises by 200% or more along routes to the islands, coinciding with natural disasters and during holiday periods (when there is high demand of flights).
It is already within the powers of the Antitrust to impose urgent (precautionary) measures, with immediate effect. These measures interrupt a disputed action (such as a crazy surge in ticket prices), waiting for the Guarantor to bring the situation into better focus.
The Antitrust could also: initiate fact-finding investigations into the airline sector and therefore impose structural behavior on companies that respects competition and user rights. In defining the new rules and in its investigations, the Antitrust will also take into account the use that carriers make of algorithms to update ticket prices.
