TAP has started behaving like a commercial airline with news today that it is raising ticket prices at the peak Christmas and New Year periods.
The surcharge of between €25 and €100 for holiday flights applies to tickets purchased after December 6th, confirmed the company, justifying the move by "strong demand" for its services.
"The surcharge is only applicable to those who have not made reservations,” and will have the effect of creating a rush for holiday flight tickets in the next few days.
According to TAP, the surcharge applies per flight with €25 payable each way for flights within Europe, including Madeira and the Azores, €50 for flights to Africa and South America, and €100 for flights to and from North America.
The Regional Secretariat for the Economy, Tourism and Culture of subsidy-dependent Madeira has reacted strongly at TAP’s "cost uplift for travel" and requested "a clarification from the Civil Aviation Authority."
The regional secretary, fresh back from the Karl Marx training camp, said that "the change, which is unjustified and unprecedented by this company, reveals an arrogant attitude, opportunistic and unspeakable, which is unacceptable, in that in addition to distorting the market and breaking consumer confidence, it sets a precedent which might turn out to have a highly detrimental impact for the island in the future."
It should be of no great surprise that ticket prices now will go up and come down depending on consumer demand but the years that TAP was a state luxury, paid for by increasingly impoverished taxpayers, finally may be over.
The Socialist Party leader António Costa must decide whether to ignore his own pre-election promise that state sell-offs would be bought back into public ownership.
The cost of buying back TAP shares is unknown but the conversation must take place with the Left Bloc and Communist Party leaders, both keen to regain control of the airline and appease its nine represented unions.
Comments
As Ed says, TAP now is behaving like a commercial company, not a not-for-profit gravy train for employees and management. It is trying to sell off its Christmas tickets before December 6th, a deadline that no doubt will be extended if all the seats have not been sold by then.
Obviously historical data - but why then the surcharge if not to milk the traveller - those that must flight TAP or die. But with the risk that many others may now shop around and go on the cheapo alternatives ?
One possibility is to work out staffing rotas over Christmas and New Year. Which flights can be cancelled due to lack of demand.