Friday, July 27, 2012

The increase of air travel was less than expected


The theory is that it would soften the impact as the resolution reads "on account of the fee is established, due to adjust itself to the provisions of Article 42 of the National Law No. 19,030 Air Policy." Although the increase is well received by all companies operating locally, the request would have originated in a request for Aerolineas Argentinas in response to recent salary adjustments and the international price of crude. According to internal projections, this year Airlines should disburse some $ S 90 million just for the higher fuel prices. The question that remains is whether there will be another increase over the year to reach the planned figure. The resolution authorizing the increase in 64/2011 was published in the Official Gazette arrived in the country once the Secretary of Transportation, Juan Pablo Schiavi, who had traveled to America to meet with officials from the FAA. On the results of this meeting nothing was reported.

Finally, fly into the country will be 8% more expensive. The government authorized the increase of the price list for airlines that fly to 31 destinations departing from Buenos Aires and seven routes from Cordova. The increase, effective today, is the third in nine months: in June 2010 authorized a 15% hike in October, another 10%.

The increase was published yesterday in the Official Gazette, in Resolution 64/201, which established the existing tariff bands from 0 today (see "Change ..."). From the Department of Transportation explained that the measure Clarin, like the two hikes implemented in 2010, tends to widen the price gap between the plane tickets and long distance mics, because in some places there are differences minimum among the cheapest flights and premium bus services.

The move was welcomed in the field of long distance transport, but was considered "insufficient." "Any readjustment of prices in air transport is positive. We say rearrangement and no increase, because from the enormous subsidies it receives the flagship airline, tickets offered are well below the actual value. This measure has now rates a more real, though still insufficient, "said Gustavo Gomez, spokesman for the Long Distance Business Chamber (CELADI).

"Following international standards, the air fare should be between 2 and 3 times the executive service bus. But today the difference is minimal, because the airlines are subsidized 45% of the value of the ticket, and companies bus, only 8%, "he said.

If you compare the fares for travel by bus from Retiro to the floor rate of official picture, in many cases the difference is minimal. A ticket in a car executive Cordoba yesterday offered $ 228, while the value set for the aircraft now part of $ 287. A service suite to Mar del Plata is around $ 164, when the base rate for flight went from $ 187 to $ 202.

The price ratio, explained from the long distance sector, became "distorting" and affects the most profitable segments: from Buenos Aires to provincial capitals and large cities. Travel to Bariloche in a bed or executive car costs about $ 530, a value higher than the current minimum in the new rate schedule airlines like Tam ($ 511). And the flight Buenos Aires-Rio Gallegos in a micro bed costs $ 685, when the range published yesterday in the Official Gazette is $ 370 and $ 701.

The lines operate domestic flights since 2002 with a scheme of tariff bands officially regulated. In the last five years, obtained the authorization to apply increases seven passages (see "Increases"), including effective as of today.

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