Ryanair has responded aggressively to the news that Italy’s competition authority has launched an investigation into the airlines market dominance in the country, where Ryanair holds a 38pc market share.
The focus of this investigation has shifted from ticket price-fixing to ancillary services in recent days as the authority looks into Ryanair’s dominant positions in services for tourists like car rentals and hotel bookings, which they believe may harm travel agencies and customers.
This development comes amid a disagreement between the Italian government and Ryanair over a decree that aimed to set a price cap for domestic airline tickets to Italian island destinations.
Ryanair’s CEO, Michael O’Leary, has criticised the proposed cap and threatened to reduce flights on popular domestic routes if it is not abandoned. Ryanair said the investigation will demonstrate that their conduct doesn’t harm consumers and encourage passengers to book directly through their website for the best fares.
The competition authority argues that Ryanair’s practices may restrict travel agencies from selling airline tickets, which is an important part of holiday planning and a crucial entry point for selling additional services. Ryanair, on the other hand, claims that the authority has not shown interest in investigating the prices for its flights and services on online travel agent websites, which often exceed the costs on their own website.
