El Salvador: Proposal to Set Air Fares

The Superintendency of Competition could set minimum and maximum transient prices for air tickets, in the national interest or because of public need.

Wednesday, October 2, 2013

The initiative a proposal by the Frente Farabundo Martí para la Liberación Nacional (FMLN) to the Salvadoran Congress to amendment Article 22 of the Civil Aviation Act so that the Superintendency of Competition (SC) can set those rates. They even suggest that the SC be compelled to give the opinion requested.

"... The intervention by the State and the Superintendence in setting prices of air tickets is "justified" by taking into account the "market distortions" in air transport", reported Elmundo.com.sv.



More on this topic

Costa Rica: Air Travelers Prefer Low Rates

April 2015

The proportion of passengers using low-cost carriers to pass through the airports of San Jose and Liberia increased from 9% in 2011 to 13% in 2014.

There are about 10 'low cost' airlines which regularly operate in the country, however in peak tourist season the number increases, especially at the airport in Liberia.

Open Skies Policy Approved in El Salvador

October 2013

A series of reforms to the Civil Aeronautics Act establishes a policy of open skies and eventual pricing setting.

From a press release issued by the Legislative Assembly of El Salvador:

With 81 votes in favor, the Members of Parliament on Thursday approved nine amendments to the Civil Aeronautics Act, among which is the creation of an Open Skies policy which is consistent with globalization and with the regulations of other countries, to enable authorities to establish competitive agreements with air transport markets on a large scale.

Few Open Skies in the Region

July 2013

State protectionism reduces the competitiveness of Latin American air transport, restricting its development and producing prices that are above the global average.

Despite progress in some countries, the region is moving at a slow pace in terms of liberalization and the steady trend of lower prices observed in Europe and the USA.

TACA reduces fuel charges.

November 2008

The company announced that starting this week they will reduce fuel charges "in an effort to pass on reductions in international fuel prices to their passengers."

They previously charged $110 round trip. Now, according to TACA, this reduction in fuel prices will lower round trip fares within Central America by $20.

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