Iata has blasted a decision by the Spanish government to impose fines of almost £150 million on airlines for adding additional charges for elements such as cabin baggage, seat reservations or ticket printing.
Spain’s Consumer Rights Ministry confirmed it had imposed the combined fines of €179 million on Ryanair, EasyJet, Vueling, Norwegian and Spanish airline Volotea, having dismissed appeals to a ruling made earlier this year.
Ryanair was fined the largest amount of €108 million, with Vueling fined €39 million, easyJet €29 million, Norwegian €1.6 million and Volotea €1.2million.
Iata said the move “undermines freedom of pricing which is fundamental to consumer choice and competition, a principle that has been long upheld by the European Court of Justice” and said it was confident the decision would be overturned.
Director general Willie Walsh said: “This is an appalling decision. Far from protecting the consumer interest, this is a slap in the face of travellers who want choice.
“Prohibiting all airlines from charging for cabin bags means that the cost will be automatically priced into all tickets. What’s next? Forcing all hotel guests to pay for breakfast? Or charging everyone to pay for the coat-check when they buy a concert ticket?
“EU Law protects pricing freedom for good reason. And airlines offer a range of service models from all-inclusive to basic transport. This move by the Spanish government is unlawful and must be stopped.”
Referring to a similar fine imposed in 2010 but subsequently overruled by the EU, Walsh added: “They failed once, and they will fail again. Consumers deserve better than this retrograde step which ignores the realities of today’s travellers.
“Spain’s tourism industry has grown to account for nearly 13% of the country’s GDP, with 80% of travellers arriving by air, and many of them budget conscious. Cheap air fares have played a huge role in growing this sector of the economy. The government has no competence – legal or practical – in eliminating the availability of basic airfares.”
Ryanair and Spanish airlines group ALA said they would appeal the fines, with Ryanair chief executive Michael O’Leary adding: “These illegal and baseless fines have been invented by Spain’s Consumer Affairs Ministry for political reasons and are clearly in breach of EU law. Ryanair has for many years used bag fees and airport check-in fees to change passenger behaviour and we pass on these cost savings in the form of lower fares to consumers.
“Today’s illegal fines in Spain are in breach of EU law (Reg 1008/2008) and will be overturned by the EU Courts, which have repeatedly defended the right of all EU airlines to set prices and policies, free from government interference.”
Despite the criticism, the move was welcomed by consumer association Which?, which has lobbied the UK government to clamp down on so-called “drip fees”.
The association’s director of policy and advocacy Rocio Concha said: “Which? research has shown that add-on fees for bags and seats can drive up the price of so-called low-cost flights by hundreds of pounds for a family, so it’s important that regulators clamp down on these sneaky pricing practices.
“The UK government should ensure that additional fees for add-ons like seat selection and luggage are made clear at the very start of the booking process, so travellers can easily compare the final price they’ll pay with different airlines.
“Unfair charges for parents to sit with children on flights should also be banned.”
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