Italian Airlines Criticize Government’s Plan to Cap Ticket Prices, Citing EU Market Concerns

Airlines operating within Italy have raised concerns over a proposed initiative by Prime Minister Giorgia Meloni’s government to control ticket prices. The draft legislation, subject to potential modifications, seeks to limit airfare costs for flights to and from Sicily or Sardinia to 200% of the average rate for similar routes, as reported by Giornale di Sicilia.

Sicily and Sardinia, popular tourist destinations, face challenges due to inadequate transportation connections to the mainland, resulting in exorbitant fares for both locals and visitors during peak seasons. Recent spikes in ticket prices prompted the government in Rome to explore interventions.

However, Italian Board of Airlines Representatives (IBAR) and Assaereo (Associazione Nazionale Vettori e Operatori del Trasporto Aereo), representative trade associations, expressed joint dissatisfaction on August 8. They noted that the government had not engaged in discussions with them, emphasizing that alternative solutions could have been identified to mitigate industry impact.

The associations also pointed out that implementing price controls may conflict with sector regulations, notably Article 22 of the European Union’s Regulation (EC) No 1008/2008. This regulation enables airlines to choose operational routes and determine tariffs freely. The associations contended that ticket price control is permissible solely through the imposition of public service obligations.

IBAR’s membership includes major carriers like ITA Airways, Lufthansa, easyJet, Air France, American Airlines, and Emirates, among others.

The groups cautioned against measures that could hinder sector freedoms and competitive dynamics, potentially leading to adverse effects on products, ticket prices, citizen mobility, direct employment, and associated industries.

In Italy, decree law measures come into effect after parliamentary ratification within 60 days, with the possibility of amendments during ratification. ANSA reported Sicilian President Renato Schifani expressing support for governmental intervention in curbing high flight prices. He hoped that airlines would respond responsibly by reducing their prices following complaints to the Competition Authority and the judiciary.