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pnd100
Topic Author
Posts: 198
Joined: Wed Mar 18, 2009 4:40 pm

Can A Government Set Prices For Foreign Carriers?

Fri Oct 28, 2011 1:59 pm

Good Morning Airliners.net, hope all is well. Please help me out.

According to the article, the Government of India has given foreign carriers up until the end of the month to stop charging for a second checked bag on international flights.

http://www.bangaloreaviation.com/201...rs-foreign-airlines-to-shelve.html

I was unaware that any government was able to demand this of foreign carriers. Is there a precedent?

While I understand that a home country can ask their OWN carriers to comply with this type of policy, can they apply it to landing foreign carriers? For example if such a law exists in Canada, it would apply to AC, TS, WS & other Canadian carriers but can it be extended to BA, KL, EK, etc.

What are your thoughts?
 
blueflyer
Posts: 4352
Joined: Tue Jan 31, 2006 4:17 am

RE: Can A Government Set Prices For Foreign Carriers?

Fri Oct 28, 2011 2:25 pm

Quoting pnd100 (Thread starter):
What are your thoughts?

Governments can generally pass whatever law they want, unless there's a treaty obligation that gets in the way. I'm not aware of any ICAO-level agreement banning a ban on bag fees, so why not?
 
tayser
Posts: 436
Joined: Sat Mar 29, 2008 10:49 pm

RE: Can A Government Set Prices For Foreign Carriers?

Fri Oct 28, 2011 2:42 pm

Of course they can. If an international airline wants to fly to another country, it must abide by the rules and regs of that country.

Just like the Aus Government / relevant agencies stipulated that all airlines, domestic and international MUST display the Fare+Tax/Fuel Surcharge total as the advertised fare rather than like how on shop shelves in America prices you see in do not include relevant consumption taxes.
 
pnd100
Topic Author
Posts: 198
Joined: Wed Mar 18, 2009 4:40 pm

RE: Can A Government Set Prices For Foreign Carriers?

Fri Oct 28, 2011 5:51 pm

Thanks blueflyer & tayser for clarifying.

I have to plead ignorance here. I did not think this was something that was commonplace.
Government rules about the display of fares in advertising I understand, I was unaware that a foreign government could actually dictate to an airline what items it could actually charge for.

I doubt then that this move will have any effect then. Business as usual to & from India.
 
User avatar
LAXintl
Posts: 25479
Joined: Wed May 24, 2000 12:12 pm

RE: Can A Government Set Prices For Foreign Carriers?

Fri Oct 28, 2011 6:00 pm

Governments can indeed restrict even the fares airlines charge. Quite common that outside the US and EU that fares and sales must even be approved by a governmental regulatory body.

(p.s. - not too long ago that the US even governed fares, and world bodies like IATA also established approved fares between city-pairs that its members had to comply with).
 
Viscount724
Posts: 19316
Joined: Thu Oct 12, 2006 7:32 pm

RE: Can A Government Set Prices For Foreign Carriers?

Fri Oct 28, 2011 8:49 pm

Quoting pnd100 (Thread starter):
I was unaware that any government was able to demand this of foreign carriers. Is there a precedent?

Yes, Brazil used to (not sure if they still do) require different (more generous) baggage rules for carriers operating to/from Brazil and the US CAB/DOT (forget which) long ago required carriers operating to/from the US to apply the piece system for baggage rather than the weight system.

Many markets aren't yet Open Skies and governments can do whatever they want in terms of regulations.
 
airbazar
Posts: 10432
Joined: Wed Sep 10, 2003 11:12 pm

RE: Can A Government Set Prices For Foreign Carriers?

Fri Oct 28, 2011 9:13 pm

Quoting pnd100 (Reply 3):
I have to plead ignorance here. I did not think this was something that was commonplace.

Brazil does it. I believe they also have some sort of air fare regulation for international routes.

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