Airlines Penalised for "Abusive Practices"

The Spanish government has fined five airlines, including easyJet, Ryanair, and Vueling, a total of €179 million (£149 million) for what it describes as "abusive practices" targeting passengers. These practices include charging extra fees for:

• Hand luggage: Passengers having to pay to carry bags into the cabin.
• Seat reservations: Additional costs for choosing specific seats.
• Hidden charges: Fees added without clear disclosure.

This decision by Spain’s consumer rights ministry aims to protect passengers from what it sees as unfair pricing strategies.

EasyJet Hits Back

EasyJet, which received a fine of €29 million (£24.2 million), has strongly opposed the ruling. CEO Johan Lundgren described the penalty as "illegal" under European consumer law and vowed to appeal the decision.

• Lundgren argued that the ruling is anti-consumer, stating:
  "One third of easyJet customers don’t choose to pay for add-ons. Why should they take on the cost of services they don’t want?"
• The airline remains confident the appeal will be successful, with Lundgren adding: "We don't expect this to go anywhere."

Other Airlines Affected

While easyJet is one of the airlines hit with fines, Ryanair, Norwegian, Volotea, and Vueling have also been penalised. Ryanair, known for its low-cost model, has long faced scrutiny for its additional fees, including charges for priority boarding to ensure passengers can bring larger hand luggage on board.

The Spanish Government’s Stance

Spain’s consumer rights ministry has defended the fines, emphasising its commitment to ensuring fair treatment of passengers. The ministry has stated that these fees:

• Violate basic consumer protection rights.
• Disproportionately burden travellers, particularly those unaware of the hidden charges when booking tickets.

What Does This Mean for Passengers?

This ruling could pave the way for broader regulatory action across Europe. Passengers may see:

• Increased transparency: Airlines could be forced to make all fees clearer upfront.
• Potential price adjustments: If the appeal is unsuccessful, airlines may re-evaluate their pricing models.

However, the airlines argue that optional fees allow them to offer lower base fares, providing flexibility for customers to choose additional services only if they wish.

Broader Implications for Low-Cost Airlines

The fines highlight ongoing tensions between budget carriers and regulators over pricing practices. Low-cost airlines like easyJet and Ryanair argue that their unbundled pricing model – where extras such as seat selection and luggage are charged separately – is essential for keeping fares affordable.

But regulators increasingly view these practices as misleading, arguing that they lead to unexpectedly high final prices for consumers.

What Happens Next?

EasyJet, along with the other fined airlines, plans to appeal the ruling. The outcome of this case could have significant implications for the aviation industry:

• If the appeal fails, airlines may need to adapt their pricing strategies not just in Spain but across other European markets.
• A successful appeal could reaffirm their current business models.

Source: (SKY.com)