July 30, 2021

Canarias demands Fomento to monitor the prices of air tickets more – La Provincia

Canarias demands Fomento to monitor the prices of air tickets more - La Provincia

The Government of the Canary Islands is not aware that there has been an "artificial rise" in airline ticket prices between the islands and the Peninsula after the entry into force of the75% discount. However, the regional executive does require the Ministry of Public Works to make public the data and conclusions of the price observatory supervised by this department to monitor the evolution of air transport rates.

The vice-president and adviser of Public Works and Transports, Pablo Rodríguez, questioned that the studies of the observatory are "confidential" and demanded to Fomento thatincrease vigilanceand make the information known to check if there is any company "that does it wrong".

Rodríguez Valido did stress the complexity of the tariff system. In this sense meant that the extraordinary increase in demand causes that the cheaper seats that put the companies on sale in the airplanes are sold out soon, reason why it is necessary that the offer increases and that the airlines put more economic seats at disposal of the users.

The Minister of Transport will ask the Minister of Development,José Luis Ábalos, that activates the observatory and watches the prices in order to detect any anomaly and take measures, although from the Autonomous Community there is no evidence of exorbitant increases of the tickets.

Pablo Rodríguez participated yesterday in the Canary Islands Forum organized by the PROVINCE / DLP and the Atlantic Logistics and Transport Exhibition (SALT 2018) together with the general coordinator of Binter Canarias, Juan Ramsden, and the fleet director of theshipping company Fred. Olsen,Juan Ignacio Liaño. The event was held at the Alfredo Kraus Auditorium and served as the inaugural event of the Show with the sponsorship of the two transport companies and the Canarian Cluster of transport and logistics. The debate was attended by around 150 people, most of them from the business world linked to transport, logistics, commerce and construction.

The directors of the two Canarian transport companies also confirmed thatthe prices have not been alteredOn the other hand, since the 75% bonus is valid. Moreover, Juan Ignacio Liaño said that the shipping company has not touched the prices for four years, while Juan Ramsden added that the company he represents does not change the rates since 2012. In fact, the director of Binter said that the Canary Islands is the archipelago with the cheapest prices in the world to travel between islands after Cape Verde, where the Canarian company also operates.

However, the susceptibilities that exist around hidden tariff increases with the Peninsula were not entirely ruled out by Ramsden since, unlike the Islands, the price system is free while the Canary Islands have ceilings that the operators can not overcome. Therefore, the Canarian airline is committed to applying the same system in the rates between the Islands and the Peninsula so that there is no tendency to increase the tickets and shared what was said by the councilor Pablo Rodríguez, in the sense thatthe planes are more full because of the increase in demandand that the tickets bought at the last minute are more expensive and that is why there is a feeling that there is more scarcity.

The two companies do not foresee substantial changes in prices for the short and medium terms if costs continue to be moderated and fuel prices remain in the current line.

The three participants praised the current model of inter-island transport as a model and the best worldwide for connections, services, rates and competitiveness among operators. In fact, between the islands are currently moving about nine million passengers, over five million in shipping and four million per plane. Of this amount there are about two million foreigners who travel between the islands, especially by boat, but to which the bonus of 75% is not applied.

The revolution in connectivity is demonstrated by the fact that transport and logistics already represent the9% of the Gross Domestic Product (GDP) of the Islands. Canarias is currently connected to 156 destinations and has more than 870 routes, with an increase of 20% of connections in the last four years. In addition to the nine million that inter-island traffic moves, the Canarias-Peninsula corridor is used by more than seven million users. The increase in the subsidy to 75% was described as "revolutionary" by both the regional Executive and the operators, since it has meant an increase of more than 30% in some routes and a historic movement of passengers between the islands and also is beginning to notice with the Peninsula.


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