Italy defended Thursday (10 August) plans to limit prices on flights to and from its islands, saying it complied with European Union rules, after low-cost carrier Ryanair condemned it as “illegal”.

Prime Minister Giorgia Meloni’s right-wing government on Monday approved a measure to cap the price of tickets between the mainland and Sardinia and Sicily during peak periods at 200% of the average annual price.

“We intervened in line with European rules,” Enterprise Minister Adolfo Urso told TgCom24 television on Thursday, saying that on the islands there was no real competition.

“The state must intervene when citizens are subjected to a measure that doesn’t respond to market rules, but which is against and does not protect their rights.”

His comments came after Ryanair Chief Executive Eddie Wilson strongly denounced the move, telling Italian media that it was “ridiculous” and “illegal”.

Interfering in how airlines set prices for fares is “unlawful” and would have “unintended consequences”, he added in a statement.

Airlines would have no incentive to fly during the quieter winter months as the low prices would be used in the calculation of peak prices — and instead move to other markets, the company argued.

In Brussels on Thursday, European Commission spokesman Adalbert Jahnz said it had asked Italy for more information about the measure, which was part of a wider decree law that must be approved by parliament within 60 days.

“More generally, the Commission supports measures to promote connectivity at an affordable price in line with EU internal market rules,” he said.

He emphasised that “sustainable competition with free price setting is usually the best guarantor of affordable prices”.

But “in specific cases — for example routes that are not adequately served by market operators, such as routes to and from remote regions — the EU law allows public service obligations with price regulation to ensure both territorial connectivity and affordability with support from public funds”.

Source: Euractiv.com