The Spanish Ministry of Consumer Affairs has fined multiple low-cost airlines a total of €179m for “abusive practices.” Ryanair received the largest fine of €108 million, while easyJet and Vueling also faced sanctions. The ministry is accusing budget airlines of violating consumer regulations, such as lacking transparency about prices.
What has happened?
The Spanish Ministry of Consumer Affairs issued sanctions against airlines that violated consumer regulations through “abusive practices”. Their aim is to prohibit practices such as charging extra for carry-on hand luggage and reserving seats for children, which they feel is unfair to the consumers.
The ministry has sanctioned five budget airlines, including Ryanair, Vueling, easyJet, Norwegian, and Volotea. The ministry has hit Ryanair and Vueling the hardest, charging Vueling €39m and Ryanair €108m.
The new sanctions and fines are a continuation of the initial fines proposed in May. Spain’s Minister of Consumer Affairs, Pablo Bustinduy, has added that the appeals from the airlines have been rejected, so the fines will remain.
What accusations has the Spanish ministry put forward?
The Spanish ministry also accused the airlines of not allowing cash payments in Spanish airports, causing inconvenience to many passengers who lack alternative payment methods. If they only have cash, passengers paying for overweight luggage at the check-in counter may have a problem.
The ministry also accused the budget airlines of providing misleading pricing on their website. The ministry asserted that the airlines’ websites lacked transparency. This is an issue for customers, as they are unable to fairly and accurately compare fares between airlines. Furthermore, customers end up overpaying for extra charges, with fees they were not expecting.
Ryanair has also faced accusations of charging exorbitant prices for the simple act of printing a boarding pass during check-in. If the customer does not have their boarding pass downloaded, Ryanair will charge up to £20 for printing.
What do budget airlines think?
Ryanair CEO Michael O’Leary has announced that the company will be appealing the case by taking it to the EU courts. Commenting that
“Spain’s Consumer Affairs Ministry invented these illegal and baseless fines for political reasons, which clearly violate EU law. Ryanair has for many years used bag fees and airport check-in fees to change passenger behavior, and we pass on these cost savings in the form of lower fares to consumers.”
O’Leary goes on to state that under EU law, airlines are free to set their own prices and policies without government interference. They anticipate a favorable verdict from the EU court.
EasyJet and Norwegian have also announced that they will be appealing this case. EasyJet has also released a statement on the issue.
“We completely disagree with the decision of the Spanish Consumer Ministry and find the proposed sanctions outrageous.”
The Spanish Airlines Association (ALA) has criticized the decisions of the Spanish Ministry, saying that the fines undermine the EU’s free market and go against EU beliefs.
“If implemented, the resolution of the Ministry of Consumption would cause irreparable harm to passengers, as it would violate their freedom to tailor their trip to their needs and force them to pay for services they may not need,”
said the president of ALA, Javier Gándara. He refers to the many passengers who choose to pay a lower fee by travelling light, without extra cabin baggage, which would no longer be an option if the sanctions were to happen.
What do you think about this case? Is the Spanish Ministry of Consumer Affairs correct in their allegations?
