airblue
Posts: 1785
Joined: Sat May 19, 2001 9:16 pm

Bad News: The Monopoly Is Back In The Italian Sky

Wed Feb 13, 2002 5:19 am

When in all the world there is a fast deregulation process, a bad news come from a modern country like Italy: the monopoly is back.
Today there was the last and definitive sentence from TAR Lazio Court that decrees the return of the monopoly in the Italian sky.
The district of Sardinia, a very large island in the Tirrenian Sea, won its stupid policy.
They decided to offer state aid in order to offer cheap fares to people who live on the island and they didn't care for all the other Italians (and people from all the world) who want to go to visit this beautiful island.
These are the new rules:
only one airline is allowed to fly on the routes from Cagliari(CAG)/Alghero(AHO)/Olbia(OLB) to Rome FCO/CIA and Milan MXP/LIN.
The fares for resident are ruled by Sardinia Govern who also give money to the airlines to keep these fares.
For non-resident there aren't fixed fares, so an airline who flying in monopoly can ask you what they want.
Even if the rules are only for the Rome and Milan routes, there are an increasing of the fares to all the others domestic destinations from/to Sardinia airports.

After a pubblic contract, the winners are:

Air One:
CAG-MXP/LIN
AHO-MXP/LIN
AHO-FCO

Alitalia:
CAG-FCO

Meridiana:
OLB-MXP/LIN
OLB-FCO

Effective from next week these airlines have to drop their service:

Meridiana:
CAG-MXP/LIN

Alitalia:
AHO-MXP/LIN
AHO-FCO

Air One:
OLB-FCO

Volare:
CAG-MXP/LIN
CAG-FCO
AHO-MXP/LIN
OLB-MXP/LIN

As you can see there were a lot of competition of these routes, but the stupid Sardinia politics (moved more by own interest) has destroyed everything.
One note: from tomorrow few people will save few €€€, and many more will charge about 25/30% more than today.
It's very sad.