The European Regions Airline Association (ERA) has expressed concerns over the dumping of airfares by certain low-fare carriers, and the subsequent pressure it puts on regional carriers by impacting competition in the Single European Market.
When the aviation sector faces major operational challenges, coupled with increases in the prices of jet fuel and post-COVID recovery, for the ERA this lowering of flight costs to below operational prices is ‘irresponsible’.
Certain low-fare carriers lean on the practice of unbundling airfares, but the ERA believe this creates significant pressure and directly impacts fair competition. What’s more, the ERA believes this practice, particularly when carried out by airlines who have received State Aid, should be investigated as it is a total misuse of public funds.
Small-to-medium sized airlines support the regions of Europe by maximising the benefits of tourism with the creation of local jobs, the conservation of natural and cultural heritage and by providing improvements in infrastructure to benefit the regions. When flights are advertised at outrageously low prices, this action could be perceived as encouraging over tourism.
ERA Director General Montserrat Barriga said: “A healthy level of competition is important for our industry but eroding competitors’ margins by selling tickets at extremely low prices, even below taxes or direct costs, will gradually drive airlines out of business and ultimately reduce consumer choice and connectivity in Europe.”
“ERA will continue pushing for transparency on prices, and setting prices above taxes in the current discussions with the European Commission regarding the revision of the Air Services Regulation n.1008/2008. With the impact of the pandemic, our industry’s recovery is incredibly fragile, and it is vital that we attract new recruits to our stretched workforce. Increasing the pressure on the industry, and those working in it, is completely counterproductive.”
