The Italian government is planning to impose price controls on airline tickets to Sicily and Sardinia during the summer season. This has been met with criticism from airlines, who say that the controls are illegal and will harm the industry.
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The draft decree, which is still subject to change, would forbid companies from raising fares for these routes beyond a level that is 200% higher than the average price. Airlines argue that this is unfair and will stifle competition. They also say that it is illegal under EU law, which generally allows carriers to set their own prices.
The Italian Board of Airlines Representatives (IBAR) and Assaereo trade associations have called on the government to reconsider its decision. They say that the price controls will "negatively impact supply and ticket prices, as well as employment levels in the airline sector and related industries."
It remains to be seen whether the government will heed the warnings of the airlines. The decree-law is due to be approved later this week, but parliament has two months to ratify it. Parliament could also amend the contents of the decree during the ratification procedure.