Peru's tourism industry and sectors reject a law that would affect 70% of passengers

09-02-23

In view of the Commission's approval of a bill linked to the aviation sector, aviation, tourism and trade unions issued the following communiqué.

In February, the Transport Commission of the Congress of the Republic approved Bill 2956/2022-CR, which would allow the State to intervene in the pricing of airline tickets, with serious implications for the market. In this regard, the signatory unions point out that:

For years, the airline industry worldwide has adopted a model of flexibility and customisation of fares, offering passengers increasingly affordable ticket alternatives, which include basic services and the possibility of adding additional attributes if required.

This has allowed greater access to this essential means of transport, adding more passengers, more competitors and benefiting tourism, commerce and the entire value chain associated with the sector. In fact, between 2011 and 2019, specifically in Peru, the number of passengers transported per year increased from 18 to 40 million and air ticket prices on domestic and international routes were reduced by almost 40% in that period.

Despite this, without any market failure having been identified or an analysis of the economic impact it may cause, the bill seeks to modify the current fare scheme, which would force the most basic and economical fares to become more expensive, as they will necessarily have to include additional attributes such as choice of seat and cabin baggage of up to 10 kilograms, for which a large mass of passengers are not willing to pay; moving us away from development and global best practices.

The proposal is a direct attack on the freedom of choice that people currently have to buy an air ticket by paying only for what they want or need; and, if it goes ahead, it will affect around 70% of passengers who today choose to travel at the cheapest fare, without adding any additional services.

In this sense, we regret that this measure has been pre-approved without being technically discussed and without taking into account the opinions of specialists and competent authorities such as the MTC or Indecopi. In fact, in the middle of last year, Indecopi, the entity in charge of safeguarding the rights of Peruvian consumers, rejected the proposal and recognised that seat selection is an additional service that, if purchased, should be assumed by the passenger who requires it.

For all these reasons, we urge the congressmen and their benches and the authorities of the Executive Branch to review this decision and to study this bill to verify its legitimacy and the real implications it may have, since, instead of seeking the greatest benefit for the population, it will seriously impact on travellers, connectivity, tourism, trade and the socio-economic development of the country, making access to the service difficult for millions of people.

Signatory unions:

• IATA, International Air Transport Association

• AETAI, (Association of International Air Transport Companies in Peru)

• APEA, Peruvian Association of Airline Companies

• ALTA, Latin American and Caribbean Air Transport Association

• CANATUR, Peruvian National Chamber of Tourism

• COMEX, Peruvian Society of Foreign Trade

• APOTUR, Peruvian Association of Incoming and Domestic Tour Operators