Italy dilutes plan to cap some air fares

Industry group Airlines for Europe said it was pleased with the modification, arguing that carriers should be free to set prices

Ryanair had said the decree was "illegal and unenforceable" and challenged it at the European Commission

Italy's government has dialled down plans to cap airfares for flights to Italian islands after airlines including Ryanair challenged the legality of its initial proposal.

The government will now give Italy's competition authority the job of policing prices for internal Italian flights to destinations such as Sicily and Sardinia.