November 23rd 2024.
Two popular budget airlines, Ryanair and easyJet, have recently been fined for what has been deemed as 'abusive practices'. This hefty fine of almost £150 million has been imposed by Spain's consumer rights ministry due to these airlines charging customers for carry-on bags, among other things. It has been reported that these actions violate customer rights and go against the norm of including such costs in the ticket price.
The fines were not just limited to Ryanair and easyJet, as other airlines such as Norwegian, Vueling, and Volotea were also penalized. This decision has raised concerns about the business model of budget airlines, which heavily rely on offering low ticket prices while charging for additional services. Ryanair, being the most heavily fined with a whopping €108 million, has stated that they will be challenging this decision in the Spanish courts. CEO Michael O'Leary has called the fines "illegal and baseless", stating that these practices are necessary for cost-saving and are passed on to customers in the form of low prices.
The head of the industry group ALA, Javier Gandara, has also expressed his disappointment with the ministry's decision. He has mentioned that all the airlines involved will be appealing the fine for cabin baggage charges, although not all of them will challenge the other measures, such as accepting cash for onboard purchases. ALA has labeled this decision as 'nonsense' and believes it goes against the principles of a free market and EU regulations. Additionally, it has been estimated that this move will force around 50 million passengers, who only travel with a small bag, to pay for services that they do not need. This could potentially harm the Spanish travel industry, as no other EU country imposes such restrictions on extra fees for large carry-on bags.
While Spain has taken this strict stance on budget airlines, other countries like Italy have also implemented regulations to limit certain practices by these airlines. In fact, Ryanair had previously lost an appeal against a ban on charging extra fees for seat reservations next to children under 12 or individuals with disabilities. It remains to be seen how this decision will affect the future of budget airlines and their pricing strategies.
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