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November 24, 2024
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Spain Fines Budget Airlines €179mn for Unfair Practices

Spain has imposed fines totaling €179 million on five budget airlines, including Ryanair, EasyJet, Vueling, Norwegian, and Volotea, for "abusive practices" like charging for hand luggage.
Spain Fines Budget Airlines €179mn for Unfair Practices
Lucas Davies - Unsplash

Spain’s Consumer Rights Ministry has fined five budget airlines €179 million (£149 million) for engaging in practices deemed abusive, such as charging passengers for hand luggage and printing boarding passes. The largest penalty, €108 million (£90 million), was issued to Ryanair, followed by EasyJet with €29 million (£24 million). Other airlines penalized include Vueling (€39 million), Norwegian (€1.6 million), and Volotea (€1.2 million).

These fines, the largest ever issued by the ministry, follow an investigation into the low-cost airline industry. The ministry cited violations of consumer rights, including lack of price transparency and misleading information that obstructed passengers from making informed choices.

Key practices under scrutiny include charges for carry-on luggage, seat selection fees, and excessive costs for printing boarding passes at airports. Ryanair, for example, was criticized for requiring passengers to pay what the ministry called "disproportionate fees" at terminals.

The fines were calculated based on the “illicit profits” each airline earned from these practices. Andrés Barragán, secretary general for consumer affairs at the ministry, defended the decision, stating that both Spanish and EU laws support the sanctions. “Charging €20 to print a boarding card at the airport is an abuse that no consumer should face,” he said.

The ministry also announced plans to ban certain practices, such as charging for carry-on hand luggage and reserving seats for children, to enhance consumer protection.

Ryanair CEO Michael O’Leary called the fines “illegal” and “baseless,” pledging to appeal the decision in EU courts. He defended the airline’s fee structure, arguing it encourages passengers to save costs and allows the airline to offer lower fares.

EasyJet and Norwegian also announced plans to contest the ruling, with the Spanish airline industry association (ALA) describing the ministry’s actions as a violation of EU free market rules. The ALA further criticized the fines as "nonsense."

Consumer rights organization Facua, which has long campaigned against such fees, hailed the ruling as “historic.” The ministry believes the decision sets a precedent for addressing similar issues across Europe, where these charges are common.

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