News from Patricia Pulrich after the return of regulated prices on air travel

The government ordered yesterday The system of minimum fares and tariffs for regular domestic commercial air services needs to be re-establishedIn accordance with Order 879/2021.

According to the regulations, the Ministry of Transport has to fix the fare belts for domestic flights within 180 days.

Following the decision of the Alberto Fernandez administration, Patricia Pulrich, President of the Pro. He went to the crossroads of the announcement and asked that Aerolinas cancel the action in favor of Argentina. This prevents low-cost companies from selling at a price lower than the price set by the government.

Through his social networks, Pulrich promised: “A blow to the working class and the middle class: they keep the minimum price on airfare. For all maximum prices, except tickets. Bureau’s trade union monopoly to continue “.

Then asked the former defense minister. “We need to repeal this resolution, and flying is not just for the authorities and the rich.”

Application Minimum fares on domestic commercial aviation services “Avoid both scenarios of rate abuse by protecting users” as well as “any kind of economic speculation based on high returns” This public service must be used to disrupt and plunder practices, ”the order said.

The move came after analyzing the balances provided by transport companies operating regular services with free ticket sales. “The economic outcome of all companies is negative.”

It “means Revenue from aviation operations has not been sufficient to offset its direct and indirect costs, for many years, This has led to the collapse of the system as a result of the setting of looting charges, ”he added.

In addition, the impact of the epidemic on aviation has been seen as “with catastrophic consequences for the sector” and “in this integrated framework, commercial airlines operating in cabotage and international organizations have been severely affected.”

“In a market plagued by epidemics, over-distribution and the presence of rates that do not adjust the operating costs of companies can occur. The existence of predatory market rates can lead to absurd competition with irreplaceable values, which for a reasonable period of time can prevent business exploitation in terms of security and profitability, ”he added.

In this case, it was resolved “It is convenient for the public to regulate reference rates and rate bars, which act as a framework for setting prices. Services provided by regular operators of domestic passenger air transport will be compatible with current operating costs.

The government of Mauricio Macri began in 2016 the removal of the tariff system that regulated the prices of cabotage tickets. The fee ceiling was removed in January 2016, while the site was removed in August 2018.

It also introduced changes in the discipline The commercial airline has since allowed new airlines to operate in the cabotage market, including airlines with “low cost” business models.

In this way, companies entered the market in those years Flypondi, Jetsmart and Norwegian, the first two of which are currently in the country with this type of service.

In an order issued today, the government also established that the National Civil Aviation Administration (ANAC) is “responsible for the regulation, eligibility, scrutiny and determination of the criteria and criteria for calculating fair, equitable and competitive rates”. For aerial floor maintenance services (curve services) ”.

The Ministry of Transport, in conjunction with the regulatory body of the ANAC and the National Airport System (SNA), establishes and prioritizes the practice of assigning operating sites, airports, overnight flight conditions and flight schedule possibilities. Offer of airline services for air connectivity and access in Argentina.