Ryanair CEO Michael O'Leary has dismissed an investigation by Italy's anti-trust agency into the pricing of the low-cost carrier's flights as a "joke". This comes in response to an Italian government decree to cap the price of flights to Sicily and Sardinia, which O'Leary has labeled as "illegal and unenforceable".
.gif)
The Controversy
The Italian government last month approved a decree to reduce the impact of rising airfares after a wave of sharp price hikes during the summer, particularly on routes to Sardinia and Sicily. The decree was designed to clamp down on carriers' use of algorithms to set ticket prices.
O'Leary's Response
O'Leary has been vocal in his criticism of the decree, stating that the government failed "to explain how it works". He questioned the basis for determining the average airfare, asking whether it would be the average fare in August, November, or on specific days of the week. In response to the price cap, O'Leary has threatened to scale back some of Ryanair's flights on popular domestic routes. He suggested that the airline could shift its focus instead to international routes to the southern Italian holiday islands.
The Aftermath
Despite the controversy, O'Leary has affirmed Ryanair's commitment to growing in Italy over the long term. He stated that the airline plans to grow from 50 million to 100 million passengers in Italy. Ryanair has lodged a complaint with the European Commission regarding the decree. The outcome of this complaint and the ongoing investigation by Italy's anti-trust agency will undoubtedly have significant implications for the aviation industry in Italy.
