The Spanish government has fined five European budget airlines a total of €179 million for “abusive” practices, such as charging passengers for larger items of cabin baggage.
Ryanair, Vueling, easyJet, Norwegian and Volotea have all been fined by Spain’s Ministry of Consumer Affairs for their hand luggage charges, as well as for charging customers for adjacent seats when travelling with disabled people or children. The government said it intends to ban these practices by airlines.
The largest fine was for Ryanair at nearly €108 million, followed by Vueling (€39.3 million) and easyJet (€29 million). The fines were much lower for Norwegian and Volotea at €1.6 million and €1.2 million respectively.
Spanish minister Pablo Bustinduy said there can be “no business models based on the violation of consumer rights or abusive practices”.
But the airline industry has strongly criticised the fines. Carriers say they will appeal against the Spanish government’s decision and claim the move is against EU law.
Willie Walsh, director general of airline association IATA, said it was an “appalling decision”, which would be a “slap in the face of travellers who want choice”.
“Prohibiting all airlines from charging for cabin bags means that the cost will be automatically priced into all tickets. What’s next? Forcing all hotel guests to pay for breakfast? Or charging everyone to pay for the coat-check when they buy a concert ticket?” added Walsh.
“EU law protects pricing freedom for good reason and airlines offer a range of service models from all-inclusive to basic transport. This move by the Spanish government is unlawful and must be stopped.”
Spain’s ALA aviation association said the government’s decision was “nonsense” and “undermines the free market”.
“The association warns that if the consumer sanction is applied, Spain would be the only country in the EU where the practice of charging for luggage in the cabin would be prohibited, leaving airlines operating in this country at a competitive disadvantage,” added ALA in a statement.
“The consumer decision, if applied, could seriously and irreversibly harm consumers. It would force 50 million passengers who travel without a trolley in the cabin to pay for a service they do not need.”
Ryanair’s CEO Michael O’Leary confirmed that the airline group would appeal the government’s decision in Spain.
“These illegal and baseless fines, which have been invented by Spain’s Consumer Affairs Ministry for political reasons, are clearly in breach of EU law,” added O’Leary.
In Italy, the carrier has also come under fire for its €55 airport check-in fee. The country’s Competition and Market Authority (AGCM) earlier this month closed its investigation into Ryanair’s extra check-in costs – without issuing a fine – after the carrier agreed to fully reimburse all travellers between 2021 and 2023 who paid the fee and lodged a complaint. Travellers who paid the fee but did not file a complaint with the carrier will be reimbursed €15 or receive a €20 Ryanair voucher.
AGCM had been investigating the carrier for “possible unfair commercial practice” regarding the conditions of its free online check-in process because “it did not adequately inform consumers about the period of availability of the service and the possible increase in costs in the event of failure to check-in online”.
According to the authority, Ryanair has also agreed to modify information on its booking channels to more clearly communicate its check-in processes and the costs involved.