“Less competition, higher prices and scarcity”: the consequences of the promulgation of the “anti low cost law”

The so-called ‘anti low cost‘ continues to arouse controversy in part of the population, because its possible promulgation would imply the interference of the State in the tariff policy of the national and international airlines that operate in the country. The proposal has already raised concerns in the airline industry.

Jaime Dupuyexpert in international affairs and foreign trade, questioned on his social networks the approval of the bill known as 2956/2022-CR, which was approved by the Transport and Communications Commission of Congress of the Republic at the end of last month.

“In February, after a debate that didn’t even last 10 minutes, the Congressional Transportation and Communications Committee approved the advice that racks up the invoices 2210 and 2956in regards to plane tickets. What are they saying?” Dupuy tweeted.

“That passengers have the right to choose the seat of their choice (in the corresponding category, fare or class of service), as well as to charge a handbags up to 10 kilograms (which can be carried in the cabin), at no additional cost. Sounds good, right?” he added.

However, the expert clarified that “not so much”, as a virtual endorsement of this “would constitute a pricing modality and a violation of the lfreedom of employment and free enterprise, protected by the Constitution”.

“For years, the Aeronautical sector A flexible and personalized pricing model has been adopted, offering increasingly cheaper alternatives, which include basic services and the possibility of adding additional attributes when required by the passenger. This allowed the development of aviation, tourism and global trade, adding more competitors and passengers, and lowering fares more and more,” he explained.

He specified that in Peru, he allowed that between 2011 and 2019, the number of passengers transported per year increased from 18 to 40 million and a reduction during this period of almost 40% in the prices of plane tickets on national and international routes.

“The decision violates the freedom of travelers to buy an air ticket by paying only for what is necessary, which will affect approximately 70% of people who buy their ticket today without adding any additional service,” he said. he pointed out.

“Its approval would generate less competition, higher prices and scarcity. This would make it difficult for Peruvians to access the aeronautical transport service. To see in the plenary session of the Congressthis advice should not be endorsed,” he said.