The Argentine Government announced the return of maximum and minimum fares, meaning that Argentine airlines will offer “tariffed” tickets on domestic flights, something that had not happened since 2018 during the government of Maurício Macri.
As a result, low-cost airlines such as Flybondi and JetSmart fear that the new decision will favor state-owned Aerolíneas Argentinas, directly harming competition.
With the new decision of Decree 879/2021, the Ministry of Transport will have 180 days to publish the new minimum and maximum rates to be applied.
However, when the decree is in effect, airlines will have to apply specific amounts without exceeding the minimum and maximum amounts required by the government, which could directly affect operations or the arrival of new airlines to Argentina.
In recent years, the arrival of other companies focused on low cost in Argentina has not only favored the growth of the airline industry, but also competition between airlines, which have started to offer tickets at prices below the usual.
With information: La Nación
