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Ryanair threatens to cut more routes in row over Italy’s flight price cap

Ryanair boss Michael O'Leary said the airline will reduce flights to Sicily and Sardinia after the Italian government attempted to cap fares with a "stupid, idiotic" new law.

Ryanair threatens to cut more routes in row over Italy’s flight price cap
Ryanair CEO Michael O'Leary in London on March 22, 2023. Ryanair has repeatedly criticised plans by the Italian govermnent to cap air fares to the major islands. (Photo by Daniel LEAL / AFP)

“We have already reduced flights by 10 percent to Sardinia and we will do the same for Sicily this winter,” O’Leary said on Tuesday, amid an ongoing row between budget airlines and the Italian government over a new law aimed at limiting air fares to and from the islands.

“It is a stupid, idiotic decree, which will reduce flights by increasing fares,” O’Leary said as he presented the company’s winter routes, adding that it was “based on rubbish data.”

Ryanair, which has repeatedly criticised the move since it was first announced in August, had already announced an eight-percent reduction in services to and from the island region of Sardinia.

“A reduction of almost 10 percent compared to the planned schedule is entirely linked to the Italian government’s decree, which we consider totally illegal and which will only have the effect of reducing connectivity,” Ryanair Chief Commercial Officer Jason McGuinness told reporters in Cagliari on Thursday.

READ ALSO: What does Italy’s new flight price cap mean for passengers?

McGuinness on Thursday appealed to Italy to “stop this decree law to avoid further irreparable damage and, instead, make Italy more competitive by removing the municipal surcharge tax from all the airports on the peninsula.”

The cut means the cancellation of three domestic routes: between Trieste and Cagliari, and between Alghero and Treviso, and Alghero and Bari. It lowers the number of connections on seven routes including six important connections to Rome, Milan (Bergamo and Malpensa), Catania, Naples and Venice, as well as Brussels Charleroi.

Italy’s government said the decree will clamp down on the use of algorithms to set flight prices, which have been blamed for soaring fares to the major islands.

The decree bans the algorithms if applied to connections to Sicily and Sardinia; if applied to peaks in demand linked to seasonal factors; and if they lead to the price of tickets or services being 200 percent higher than the average price.

Asked about O’Leary’s comments on Tuesday, Italy’s business minister told reporters: “Italy is a sovereign country and won’t be blackmailed.”

Urso denied accusations that the decree was illegal, and said Ryanair “has been punished 11 times for having breached the market rules and the rights of consumers of this country.”

The decree has yet to become law, and Urso has held a series of meetings with airline bosses ahead of its implementation.

Flights between mainland Italy and the islands have repeatedly been flagged up by consumer groups as being overpriced, and airlines have long faced accusations of running a “price cartel”: something Ryanair has furiously denied.

The European Commission said it had sought clarification from Rome over the decree, adding that price capping is rarely an effective way to achieve affordable prices.

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STRIKES

UPDATE: Italy’s government postpones nationwide rail strike on Sunday

A 23-hour nationwide rail strike planned for Sunday, May 19th was postponed on Thursday following orders from Italy's transport ministry.

UPDATE: Italy's government postpones nationwide rail strike on Sunday

Passengers travelling across Italy by train were expected to face disruption this weekend as staff at state-owned railway operator Ferrovie dello Stato – which includes Trenitalia, Trenord and Trenitalia Tper – and private company Italo planned to strike from 3am on Sunday, May 19th to 2am on Monday, May 20th, for a total of 23 hours.

But Italy’s transport ministry on Thursday issued an injunction postponing the walkout to a future date, saying that the protest may have resulted in “major repercussions and public order and safety issues” at the Emilia Romagna Formula 1 Grand Prix over the weekend.

READ ALSO: Italy’s national train strike on Sunday postponed after government order

The walkout had been called by the PdM/PdB transport union in mid-April to demand the renewal of collective labour agreements in the rail transport sector.

The planned protest was set to affect all types of rail travel, from long-distance services to regional and local ones, with passengers in multiple areas of the country expected to face delays and/or cancellations. 

Staff at national rail operator Trenitalia, private long-distance operator Italo and regional train companies Trenord and Trenitalia Tper were all expected to take part in the walkout.

As of Friday morning, the PdM/PdB union had not yet issued a response and there was no detail as to when the walkout would take place.

READ ALSO: The transport strikes that will hit travel in Italy in May 2024

Some Italian media reports on Friday said that rail workers may openly challenge the injunction and go ahead with the strike on Sunday, but there was no statement from the PdM/PdB union nor the involved rail operators supporting this claim. 

Keep up with the latest updates in The Local’s strike news section.

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