The government re-established maximum fares for commercial air flights

The government published on Friday Decree 879/2021 of the Ministry of Transport to reestablish maximum rates for internal flights of commercial air transport. The argument is the “oversupply in a market depressed by the pandemic and the existence of tariffs that do not adjust to the operating costs of companies.” It is a measure in force until 2016 to which was later added the lower band removed by Mauricio Macri in 2018, which enabled the entry of low cost.

The decree gives the ministry led by massita Alexis Guerrera the task of “within a period not exceeding 180 days from the publication of this measure, proceed to the determination of maximum rates and the formation of a system of tariff bands.” The Executive Branch clarified that “an analysis has been carried out of the balance sheets presented by the transport companies that operate regular services with free sale of tickets and it was concluded that the economic result of all the companies is negative.” And he warned: “That indicates that the income from aeronautical activity does not cover the direct and indirect costs of it, for several years, as a result of the fixing of predatory tariffs, which led to the collapse of the system.”

Original source in Spanish