Competition was not the issue, instead, a minimum price established by the former administration to guarantee Aerolineas economical Sustainability.
The main issue with the low cost is that they are under the name of people without any money to avoid lawsuits. Read the newspapers, it is a scandal.
The low cost were banned after an accident where 66 people died but the company paid the compasations and went on bankruptcy because the lack of confidence after the details on how they acchieve the low cost was known.