Italy reintroduces airfare price controls on routes to Sicily and Sardinia

Italy's government has decreed new measures to cap prices on domestic flights to the islands of Sicily and Sardinia during peak periods.

According to the government, the intervention aims to "to ensure the protection of users of air transport services". Prices are capped at 200% above average fares on the relevant routes.

Ryanair, Italy's biggest domestic airline, has fares in a wide range on these routes, including some likely to be over the new price cap. The ULCC has argued that the measures will be devastating to Italy's regional growth, as it will result in reduced capacity to the islands and force an increase in the lower fares in its range.

Ryanair has a point.

The European Union removed price controls within the Single Aviation Market decades ago. Market mechanisms, not governments, should determine pricing.