Spanish Government vs Budget Airlines

Spain fines budget airlines

Spain fines budget airlines Ryanair on tarmac at airport

Spain’s Consumer Rights Ministry has fined five budget airlines, including Ryanair and easyJet, a total of €179 million (£150 million) for charging passengers extra fees for hand luggage and seat reservations. The fines, upheld following appeals by the airlines, include €108 million for Ryanair, €29 million for easyJet, and €39 million for Vueling. Norwegian Airlines and Volotea received smaller fines of €1.6 million and €1.2 million, respectively.

The ministry justified the sanctions by arguing that such practices violate consumer rights, including charging for carrying hand luggage and requiring additional payments for reserving adjacent seats for children or dependents. Pablo Bustinduy, head of the ministry, stated that the fines aim to curb business models based on consumer rights violations and emphasized that no company is above the law. He also highlighted long-standing consumer complaints about these practices.

Spain fines budget airlines Vueling in flight

Ryanair strongly criticized the fines, with CEO Michael O’Leary calling them “illegal and baseless” and claiming they contravene EU law. He argued that such fees help the airline offer lower fares and accused Spain’s ministry of using outdated legislation. Ryanair and easyJet announced plans to appeal the fines in court, defending their policies as compliant with EU regulations.

The Spanish Airlines Association, representing airlines handling 85% of Spain’s air traffic, also plans to challenge the penalties, describing them as disproportionate. The fines follow a broader investigation into low-cost airline practices, including concerns about a lack of transparency in pricing and restrictions on cash payments for additional services at airports.

The sanctions are the largest issued by Spain’s Consumer Affairs Ministry, signaling a firm stance against practices deemed abusive by consumer rights groups.

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