Spain’s Consumer Rights Ministry has imposed substantial fines totaling €179m on five budget airlines for what it considers “abusive practices” in their pricing and service policies. The penalties target Ryanair, EasyJet, Vueling, Norwegian, and Volotea for misleading pricing and lack of transparency that hinders consumers’ ability to make informed choices.
Ryanair received the largest fine of €108m, followed by EasyJet at €29m. Vueling was fined €39m, while Norwegian and Volotea were issued smaller sanctions of €1.6m and €1.2m respectively. The fines were calculated based on the “illicit profit” obtained through controversial practices.
The ministry specifically criticized the airlines for charging extra fees for various services, including:
– Carry-on luggage
– Seat selection
– Printing boarding passes at terminals
– Reserving seats for children
Ryanair’s CEO Michael O’Leary strongly disputed the fines, calling them “illegal” and “baseless.” He argued that the airline’s fee structure helps change passenger behavior and ultimately leads to lower fares. EasyJet and Norwegian have also announced their intention to appeal the decision.
The Spanish airline industry watchdog, ALA, has condemned the fines, claiming they infringe on EU free market rules. However, Andrés Barragán from the Consumer Rights Ministry defended the decision, stating it is based on both Spanish and EU law.
Barragán highlighted the particular issue of charging €20 for printing a boarding pass at the airport, describing it as an unreasonable practice that affects consumers not just in Spain, but across the European Union.
The consumer rights association Facua, which has been campaigning against these fees for six years, celebrated the decision as “historic.” The ministry plans to ban practices such as charging for carry-on luggage and seat reservations for children.
These fines represent the largest sanction issued by the ministry following an extensive investigation into budget airline practices. The penalties were initially announced in May and have now been upheld after dismissing appeals from the airlines.
The decision reflects growing scrutiny of budget airlines’ pricing strategies and additional fees. While the airlines argue that these charges allow them to offer lower base fares, consumer advocates contend that the practices are misleading and unfair.
The airlines have made it clear they will continue to fight the fines, with Ryanair’s O’Leary stating he will take the case to EU courts if necessary. This suggests the dispute is far from over, and the outcome could have significant implications for budget airline pricing across Europe.
The ministry’s action sends a strong message to airlines about transparency and consumer rights, potentially setting a precedent for how budget carriers operate in the future.