Government announces 20% decrease in boarding fees
The measure, which was announced this morning by Economy Minister José Ramón Valente, involves a gradual decrease that will be introduced in three stages, ending in 2020.
Minister of Economy, Development and Tourism José Ramón Valente announced a 20% reduction in boarding fees for domestic flights designed to promote productivity and enterprise this morning.
The National Office of Productivity and Enterprise (OPEN) will introduce the change, which will take place gradually by Supreme Decree. The first stage involves a 20% decrease in boarding fees to begin in September 2018. A further 10% decrease will be introduced in September 2019, and a final 10% decrease will take place in September 2020.
Valente noted that the measure will directly benefit the middle class, business owners and the tourism industry and is in keeping with the significant growth that air transportation has experienced in Chile. The number of passengers transported has jumped from nine million in 2007 to over 22 million in 2017.
“We want to share good news with our people. We want better times to be felt in people’s pockets starting now. This change does not impact any one group. Rather, it benefits all Chileans, whether they travel for business or with their family”, the minister stated.
Minister Valente explained that the entry of new actors into the industry over the past ten years has led to a 43% decrease in airfare prices, while boarding fees increased 28% during that same period. That means that the boarding fee now represents nearly 32% of the total cost of a domestic flight and in some cases exceeds the price of the ticket.
“This is an anomalous situation that the government is seeking to correct”, Valente said.
In regard to the implementation of the measure, he stated that the decree to reduce boarding fees will be submitted next week so that the changes will come into effect during the month of September.
Valente explained that the measure announced today will involve a reduction of close to 16% in the cost of flights between Santiago and La Serena starting now and a 25% decrease for such flights by 2020.
The country’s most popular route is Santiago-Antofagasta, and the changes will reduce the price of these flights by 10% in September of this year and a further 16% by 2020.