Cost of a ticket for international flights goes up due to a tariff increase...

gracielle

Registered
15 January 2021
Due to the increase in a rate, the cost of tickets for international flights becomes more expensive

International air tickets are more expensive as of today due to the 11.8% increase in the dollar rate for "use of the air station", which caused concern among the international chambers of the sector. The increase has already entered into force for tickets issued and to be used beginning March 15.

Business chambers considered that the increase means an "artificial increase in prices" and warned that it may cause a "greater contraction in demand, which is currently already contracted. "The International Air Transport Associations (IATA), Latin American and Caribbean Air Transport (ALTA) and the Board of Representatives of Air Companies (JURCA), sent a note to the Regulatory Body of the National Airport System (Orsna), demanding to annul the measure.

The entities maintained that the increase in this rate, from US$6 to US$57 per passenger, "will deepen the crisis in the sector." The president of JURCA, Diego García, said that although the increase "does not seem like an extraordinary amount over the total value of the ticket, it adds to a heavy burden of taxes and fees, which already make the cost of flying to other countries very expensive" ....
 

Alpinista

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Argentina is probably going to be one of the most expensive international destinations. Not only this new tax (WTF!! Campora in need for more money?) is contributing to this, probably more and more airlines leaving the market here; and who can really blame them?!

Just another absurd example when one particular group gets its way and the wider general public is going to pay the price (less tourists, less USD, which the country could definitely use in the coming years)
 

UK Man

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Strange decision the way things are but not surprising. They obviously know those who can't afford to pay it are ulikely to fly anyway.
 

QuilmesSlo

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This is a brilliant complement to the "digital nomad" initiative. Because digital nomads LOVE expensive flights. Makes them feel like ballers.
 

Dougie

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Unbelievable, you can't make this stuff up. I guess they missed that lesson in economics about elasticity of demand.
 

antipodean

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The majority of what you pay for an international ticket from Argentina is already taxes. Even worse for locals who actually pay in pesos.
The tax will end up bailing out the private concession that just got a huge extension of contract due to all the lost activity but huge obligations to finance capex project (actually designed and planned under the last government but “approved” by this government so they can take credit for “modernizing” transport in the country with some new landing lights at provincial airports almost without any commercial flights, but of course with private jets of governors and the occasional presidential/ cabinet visit for alternate capital project etc.)
 
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Pierre Smith

Registered
^ Damn.

You can understand the rationale form the perspective of a Kirschnerista: even if this reduces air travel by 10-15%, they'll make more money than the do currently on the lower volume, because of the higher tax.

But if you're government, you should be making it cheaper and easier to get people into your country to spend money. Airports should be seen as economic development infrastructure, not as a way to suck money out of travelers. Even 5% fewer visitors is a hammer blow to the tourist sector.

Overall, just a paragraph or footnote in a chapter from Argentina: World's Worst Run Country That Seems Functional To Outside Observers, but worth noting.
 
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