91999E2121

WRITTEN QUESTION E-2121/99

by Olivier Dupuis (TDI) to the Commission

(22 November 1999)

Subject: Air ticket sales

Rail, road (bus and coach) and sea travellers in the European Union can buy single or return tickets from public or private companies.

However, for air transport, most companies with a few notable exceptions offer single tickets only to business or first-class travellers, which means that economy-class travellers have to buy the return part of the ticket, even though they know that they will not be able to use it.

Does not the Commission think that this constitutes an abuse of power by the airlines, as it obliges air travellers to purchase a service that they will not be able to benefit from?

What action has the Commission taken or what action will it take to end this practice?

Answer given by Mrs de Palacio on behalf of the Commission

(17 December 1999)

The fact that airlines often charge less for their cheapest return tickets than they do for a standard fare single ticket is not contrary to Community rules on pricing as set out in Council Regulation (EEC) No 2409/92 of 23 July 1992 on fares and rates for air services(1). Under that Regulation, airlines have the freedom to set both the level and structure of their fares, thereby allowing them to react swiftly to the market. This has lead to more vigorous competition and, in particular, to lower leisure fares on many routes. Most airlines offer their lowest fares in the form of return tickets only, because it would be simply uneconomic to split them and sell them for half the price as single tickets. Often, these leisure tickets represent good value, even if only one half is used.

The benefit of Regulation (EEC) No 2409/92, however, is that it permits airlines to react constantly in order to compete with rivals. A number of the new low-cost carriers are now offering very low single fares and transparent pricing structures based on the cost of each leg of the flight. This shows that airlines are capable of reacting to their customers and it is important to preserve their flexibility to do so.

Taking account of the benefits of giving airlines the flexibility to set fares and rates in reaction to the market, the Commission has no plans to introduce any additional restrictions or requirements on airlines to address the issue of single tickets.

(1) OJ L 240, 24.8.1992.