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Tag Archives: Price Regulation

Consumer groups fight Trump administration’s decision to scrap two proposals concerning airline fees

Consumer advocacy organizations are opposing a recent decision by the Trump administration to scrap two proposals that were forwarded during the previous administration, regarding the disclosure of baggage and other ancillary fees. The Department of Transportation proposals would have called for airlines to reveal fees for checked and carry on items before a ticket is purchased. Airlines would have also been made to offer more information about how much revenue …

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Australian Competition and Consumer Commission calls out domestic carriers for excessive fees

The Australian Competition and Consumer Commission (ACCC) is considering taking action against local airlines over prickly issues such as exorbitant fees for changing or cancelling flights, and refusing to issue refunds. The ACCC will also be monitoring the reasons for airlines’ decision to cancel flights especially when speculations are ripe that the real reason is often low passenger loads. ACCC Chairman Rod Sims named Qantas and Virgin Australia and told …

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India: Capping of air fares could raise prices for passengers, says government

The Indian Ministry of Civil Aviation said that the capping of air fares has the potential to “raise prices for the 98-99 per cent of the passengers.” In a statement, the Ministry railed against observations made by the Parliamentary Standing Committee on Transport pertaining to airline staff’s misbehaviors and the over-pricing of airline tickets. “Pricing deregulation has allowed competition to bring down prices dramatically in India, making it one of …

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United States: Airfare safeguards for consumers could be on the out

Two airfare regulations that looked after the consumers’ interests could be scrapped after the United States Department of Transportation (DOT) eliminated two suggested rule amendments that were recommended by ASTA regarding ancillary fees. The rules would have mandated airlines to disclose the fees they charge for checked bags, seats, carry-ons and more, in a more visible way, to consumers making purchases. There is now speculation that other protections could also …

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Airlines International Representation in Europe calls for better aviation policies

An organization composed of representatives from European leisure airlines has called for strict limits on European Union (EU) aviation infrastructure charges and regulations on organizations that have a grip on monopoly positions in the industry. Airlines International Representation in Europe (AIRE) Director-General Sylviane Lust has expressed to EU Transport Commissioner Violeta Bulc during a meeting that improvements to the aviation policies must be implemented urgently. AIRE, which represents 16 carriers …

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German regulator asks Lufthansa for fare price information after Air Berlin’s collapse

The German cartel office has requested national carrier Lufthansa for information on airfare prices after receiving complaints over skyrocketing rates after the collapse of Air Berlin. Air Berlin stopped operations last month after filing for insolvency back in August. Lufthansa has proposed to take on an estimated 80 planes from its fallen rival, pending the approval from the EU’s competition regulator. “We have asked Lufthansa to provide information on pricing,” …

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IATA urges Philippine government to focus on developing airport infrastructure

The International Air Transport Association (IATA) has urged the Philippine government to train its focus on addressing the more urgent matter of airport infrastructure rather than entertaining proposals to increase aviation taxes in the form of a tourism tax and Green Fee. “Aviation is vital to the Philippines. It supports 1.2 million jobs and US$9.2 billion in GDP…But the social and economic benefits of air transport are at risk if …

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Airfares rising due to taxes, charges and fees, says IATA

In the airline industry, competition is seen as a driving proponent of innovation and cost reduction, offering air travellers the benefit of choice and triggering major efficiency rewards with increasing blending and hybridization of business models. But a recent analysis from the International Air Transport Association (IATA) indicates that effective competition remains limited, with major airports continuing their strong stance. An economics briefing paper entitled “Airport Competition: Myth or Reality” …

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Philippines: Airline groups protest government plans for increased regulation of aviation sector

The Philippine government’s planned moves to increase regulation of the aviation sector were met with criticism from international airline groups. In particular, the International Air Transport Association (IATA) waxed hot over a proposal by the Civil Aeronautics Board (CAB) to cap airfares. “We are against this measure. The prices should be driven by market forces,” said IATA Director General and CEO Alexandre de Juniac. “Putting caps is the best way …

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Indonesia Transport Ministry to raise floor prices for budget airlines

Indonesia’s Transport Ministry has plans to increase floor prices for low-cost carriers in a bid to bolster flight safety. According to Indonesian Transport Minister Budi Karya Sumadi, they would soon make public new regulations on the price hike. “Safety is number one. We must seriously apply it. It has been the time for us to carry out a calculation,” he said, speaking from the Presidential office. Sumadi said that the …

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