“No one abandons the most profitable market in Europe,” declared the Italian minister of business, Adolfo Urso, in Trieste at the Risorsa Mare forum. He continued,
Today I had a discussion for a few hours with all the actors of the aviation system, with all the companies operating in Italy, with the associations representing the airport managers, with the regions and therefore with the local authorities, and with the ministry of infrastructure, to define the development of the air system in our country and all the companies, none excluded. In the bilateral discussions that have taken place today and previous days, they have presented us with development plans to increase routes and flights in our country, knowing full well that Italy is the most profitable and fastest growing market in Europe.
Urso’s comments are the latest episode in a long battle that is being fought between the Italian minister of business and the airline companies themselves, led by Ryanair, over the imposition of limits upon airfare increases, following record prices in Italy during the summer of 2023. This controversy also represents the first attempt by the active minister of business to regulate certain sectors, such as the airline sector, in which a few companies now play an almost monopolistic role.
Ryanair holds almost 35% of the national and international market, and over 44% of the domestic market—double that of ITA Airways. Consequently, there is risk involved in accusing Ryanair’s CEO of making an assault on free competition. In a press release from the Ministry of Business and Made in Italy, Urso asserted that,
The measures adopted concern the protection of users in relation to air connections with the Islands—where there are no market alternatives—or in the presence of catastrophic events. And, it is justified by the interventions of the control and guarantee authorities. In fact, last December, it was the Competition and Market Authority that put the spotlight on price peaks of over 700% in Catania and Palermo close to the Christmas holidays.
Urso is convinced, not without reason, that in recent years Ryanair has had its way on the Italian market, and that the situation must change. He has argued that the air transport system “must be harmonious. Putting airports in competition with public subsidies is not good. We will discuss it at a table with mayors, regional presidents, and the leaders of the largest airports.”
Urso’s ministry announced that, in 2023, there will be an estimated increase of over 20,000 flights in the Italian domestic market compared year-on-year to 2022, demonstrating the strength of this market. Growth estimates for 2024 indicate that there may be growth in the domestic market even in the face of increasing economic uncertainty at the European level. Overall, the number of Italian domestic flights could surpass the historical records seen in 2023. An ENAC source estimated that the fleet of national carriers could also have the same trend. “We are on the right path,” Urso declared from the conference sidelines, “to create a truly free and competitive market in our country, in which everyone can act in the best possible way, while at the same time protecting the interests of consumers.”
The next step will be the decision of the European Commission, which has already put the resolution under examination. In response, Ryanair has threatened to reduce some of its routes. But Urso appears to be convinced that the behavior of these companies is contrary to free competition, and that it is harmful to consumers, as well.
