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Competition Council looking at impact of Blue Air’s market exit and of TAROM scaling down activity

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The Competition Council is looking at the impact of low-cost airline Blue Air’s exit from the market and of TAROM scaling down its activity, as well as at the reason why Wizzair, Ryanair and others have increased their fares so much, Competition Council president Bogdan Chiritoiu declared on Saturday.

„The fact that Blue Air is out of the market and TAROM reduces its activity, so out of four major actors we have about two and a half left, causes sensible effects on the market. They are visible in the fare increase. By this logic, TAROM’s survival helps not to increase ticket prices even further. Europe-wide, we see a reduction in the number of airline companies. The Scandinavian SAS was sold, Portugal’s TAP is for sale, so we see that the number of actors on the market is going down. We’re looking at the market impact of the Blue Air exit and of TAROM downsizing its activity, and at why have the prices of Wizzair, Ryanair etc. increased. Including TAROM, prices on certain routes are rather high. We are currently looking at the post-pandemic evolution of airfares,” Chiritoiu said in Sinaia.

The Competition Council has launched an analysis into the way airlines set the flight prices for routes departing from Romania. As part of the study, the institution will analyze the structure of the domestic air passenger transport market, as well as its operating mechanisms, in the context where airlines have considerably increased their fares.

The elements that will come in the crosshairs are demand and supply on the market, the level of transparency in the way airfares are established, including their dynamic adjustment, and possible dysfunctionalities of the market.

At the end of the analysis, the Competition Council will formulate proposals and recommendations in order to eliminate the possibility of misleading consumers, and to the extent that violations of the law are discovered, the necessary procedures will be initiated to sanction them, the institution’s representatives said.

AGERPRES

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