Aerodom defends fare adjustments: “It is less than 1% of the cost of fares”.

Aeropuertos Dominicanos Siglo XXI (Aerodom) specified that the tariff adjustment that will be applied as of next December 1, responds to only 13 % of the indexation that should have been made five years ago and for 26 %, in addition to the fact that the increase would only affect the total cost of airline tickets by less than 1 %.

He indicated that the U.S. Consumer Price Index (CPI) accumulated from 2017 to 2023, which serves as a reference for inflationary fare adjustments, is approximately 26 %, and the Dominican State only authorized Aerodom a total adjustment of 18.4%, to be made in a staggered manner over three years: 13 % in 2023, 2.7% in 2024 and 2.7% in 2025, based on the existing contract.

“In practical terms, the total increase to be applied in 2023 is RD$147.43 Dominican pesos (US$2.48 dollars), this being a marginal amount in the total cost of airfare. Likewise, in 2024 the adjustment will translate into RD$32.53 Dominican pesos (US$57 cents); and in 2025 it will translate into RD$33.65 Dominican pesos (US$59 cents). These amounts represent less than 1% of the overall airline ticket prices”, according to Aerodom’s press release.

In view of inaccurate information circulating in different media and social networks regarding the fare adjustment of US$2.48 (two dollars and forty-eight cents) for inflation recently announced by Aerodom, the concessionaire made the following clarifications:

The tariff adjustment authorized by the Airport Commission to Aerodom has been made based on Article 5.4.4 of the concession contract signed in 1999 between Aerodom and the Dominican State, and applies exclusively to regulated airport tariffs, which have a minimal impact on the total cost of airfare, it says.

Likewise, it reiterates that the adjustment for inflation was made to allow regulated airport tariffs to partially recover their real value after having been frozen for more than five years, mainly due to the pandemic process.

The company, which operates six of the country’s main airports, indicates that multiple international studies have concluded that the adjustments in airport tariffs are not directly related to increases in air fares, such as the study “Trends in air fares in Latin America and the Caribbean” carried out by the specialized company Flare Aviation Consulting; as well as the analysis “Determining Factors of Air Fares” carried out by the firm ICF for the Airports Council International Latin America and the Caribbean (ACI-LAC).

He explained that Aerodom, under the leadership of VINCI Airports, has boosted the growth of air transportation thanks to its global network and incentive policy. From having a traffic with 0% average growth until 2015, it moved to a traffic growth rate of 6% per year, registering a 20% growth above 2019 in 2023.

The concession contract covers the six international airports” José Francisco Peña Gómez (AILA); Gregorio Luperón, Juan Bosch, Joaquín Balaguer, María Montez and the domestic airport Arroyo Barril.

Source: Arecoa.com

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