HomeTop StoriesSpain imposes a fine of 179 million euros on 'abusive' budget airlines

Spain imposes a fine of 179 million euros on ‘abusive’ budget airlines

Spain’s left-wing government said Friday it has fined five budget airlines, including Ryanair and EasyJet, 179 million euros ($187 million) for “abuse” such as charging passengers for hand luggage.

The airlines, including Spanish carriers Volotea and Vueling along with Norwegian Air, were also fined for charging passengers to reserve adjacent seats for children and other dependents and for not accepting cash when selling tickets at airports , according to the Ministry of Consumer Rights.

The Irish no-nonsense airline Ryanair, which was the first to start charging extra for hand luggage in November 2018, was imposed the largest fine of 107.8 million euros.

Vueling – part of the International Airlines Group and also owner of British Airways – had to pay 39.3 million euros.

EasyJet was fined 29.1 million euros, Norwegian Air 1.6 million euros and Barcelona-based Volotea 1.2 million euros.

The fines also target the provision of misleading information and the lack of price transparency “which hinders consumers’ ability to compare offers” and make informed decisions, the ministry said.

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Ryanair was fined for charging passengers a “disproportionate amount” for printing their boarding passes at terminals when they did not have them.

The airline announced it would immediately appeal. His boss Michael O’Leary branded the fines “illegal and unwarranted” and said the Department of Consumer Affairs had imposed them “for political reasons”.

EU courts have defended airlines’ freedom to set prices and policies without government interference, and the fines “would destroy the ability of low-cost airlines to pass on cost savings to consumers through lower fares,” O’Leary added in a letter declaration.

Spanish aviation industry association ALA said the “absurd” decision put airlines at a competitive disadvantage and confirmed they would appeal.

The baggage rules would remain unchanged until the court decides, ALA added.

The International Air Transport Association also condemned what it called a “terrible decision” that was “a slap in the face to travelers who want choice.”

Consumer rights group Facua, which has campaigned against the fees, called the decision “historic.”

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“These sanctions are the highest ever applied by a consumer protection authority,” it added in a statement, saying passengers can now claim reimbursement for these costs.

The various fines were calculated based on the “illegal profits” each airline made from these practices.

The ministry said it had upheld the fines first announced in May and dismissed appeals previously submitted by companies.

vab/imm/rl

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