Low-Cost Flights Could End in Peru Due to Congressional Law

The affair of low cost flights could let be profitable for airlines that provide this type of services that charge for each benefit of passengers (choosing a seat, carrying a suitcase, food and others) due to an opinion that advances in the Congress of the Republic. At least that is what certain associations such as the International Air Transport Association (IATA) and the Association of International Air Transport Companies (AETAI) warn.

The opinion recently approved by the Committee on Transport and Communications would prohibit airlines from charging additional fees for concepts of luggagewhen this does not exceed 10 kilograms and neither of them can be charged for the choice of location of the purchased seats.

Note that most of this airline allows you to carry, at no additional cost, a piece of luggage by hand or backpack which does not exceed 10 kilos or measures 25 x 35 x 45 centimeters. If exceeded, it is charged as if it were a hand luggage, the additional expense can be around 30 dollars, which must be paid before boarding the plane.

Unions warn that measures approved by Congress they would raise the rates, since the lowest price segment would be eliminated and would make the Peruvian air market less attractive for the “low cost”.

Martin the Rose, representative of IATA and which brings together the main airlines worldwide, told the newspaper Gestión that the tendency is to establish different price levels depending on the service offered.

“If this measure is approved, the cheapest tariff schedule would be eliminated. The base rate would become the average rateAs a result, users in this segment would start paying more for services they don’t use, like more luggage or the ability to choose their seat locations,” he told the newspaper.

He added that even some airlines ‘low cost’ already providing services in Peru may consider leaving the national market due to the change in the tariff collection system.

“Airlines compete with the basic fare system, but if they have to offer higher fares, some will consider leaving it. peruvian market“, said.

Meanwhile, for Carlos Gutiérrez, director general of AETAI, which represents national and foreign airlines, he estimated that if this regulation were approved, the entry of new airlines would be stopped. ‘low cost’ in Peru.

“In other countries there are no such restrictions, so the Peruvian market becomes less attractive. At limit oneself low rateyou kill the possibility that the Peruvian market will grow and that more people who weren’t flying before will be incorporated,” he pointed out.

Unions have argued that Peru’s airfare flexibility, which allowed the entry of ‘low cost’, It has enabled the number of passengers traveling by air to increase from 18 to 40 million over the past 10 years by 2019 and the cost of tickets to have fallen by around 40% over the same period.