Spain fines ‘abusive’ budget airlines US$187mil

MADRID: Spain’s leftist government said Friday it has fined five budget airlines including Ryanair and EasyJet €179 million (US$187 million) for “abusive practices” such as charging passengers for hand luggage.

The carriers, which included Spanish airlines Volotea and Vueling along with Norwegian Air, were also fined for charging passengers to reserve adjacent seats for children and other dependents and not accepting cash when selling tickets at airports, the consumer rights ministry said.

Irish no-frills carrier Ryanair, which was the first to start charging extra for hand luggage in November 2018, was slapped with the biggest fine of €107.8 million.

Vueling – part of the International Airlines Group which also owns British Airways – was ordered to pay €39.3 million.

EasyJet was fined €29.1 million, Norwegian Air €1.6 million and Barcelona-based Volotea €1.2 million.

The fines are also for providing misleading information and lack of price transparency “which hinders consumers’ ability to compare offers” and make informed decisions, the ministry said.

Ryanair was specifically fined for charging passengers a “disproportionate amount” for printing their boarding passes at terminals when they did not have them.

The airline announced it would immediately appeal the fines. Its boss Michael O’Leary slammed them as “illegal and baseless” and said the consumer affairs ministry imposed them “for political reasons”.

EU courts have defended carriers’ freedom to set prices and policies without government interference, and the fines “would destroy the ability of low-cost airlines to pass on cost savings to consumers via lower fares”, O’Leary added in a statement.

Spanish air sector association ALA said the “absurd” decision put the airlines at a competitive disadvantage and confirmed they would appeal.

The baggage rules would remain unchanged until the courts decide, ALA added.

Consumer rights association Facua, which has campaigned against the fees, hailed the decision as “historic”.

“These sanctions are the highest ever applied by a consumer protection authority,” it added in a statement, saying passengers could now claim reimbursement of these charges.

The different fines were calculated based on the “illicit profit” obtained by each airline from these practices.

The ministry said it had upheld fines that were first announced in May and dismissed the appeals previously lodged by companies.