News

Low-cost carriers still in breach of OFT pricing guidelines – 24 May 2007

Ryanair has defied an Office of Fair Trading instruction to include all taxes and charges in advertised prices despite claiming it had complied.


The carrier has changed the advertised prices on its home page to include non-optional extras, but the headline fares displayed during a flight-search do not include tax and charges.


As such, a £6.99 Stansted-Berlin one-way fare incurs additional charges of £23.98 at the booking stage – giving a price more than four times what the OFT considers the published fare.


In a statement on May 9, the Irish carrier said: “From today, all Ryanair’s fares will be quoted inclusive of taxes.”


ABTA has begun enforcing its code of conduct on inclusive pricing following a guarantee of tough action from the OFT, and has written to 12 operators it has found to be in breach.


It has warned the 12 to include non-optional extras in headline prices by June 13. Failure to do so will lead to a fine. ABTA is depending on the OFT to act equally tough.


An OFT spokesman insisted: “We are going to ensure airlines comply.” However, a Ryanair spokesman said: “We have written to the OFT saying it has no jurisdiction.”


EasyJet has also yet to comply, but a spokeswoman backed the move, saying: “We are talking to the OFT and will show all-inclusive prices in the summer.”


Thomson, which has campaigned on the issue, is among those ABTA has written to. Sales director Derek Jones said: “On one part of our website, in the late deals section, we don’t include Air Passenger Duty due to a technical glitch. It will be compliant within 14 days. We are happy there has been movement to bring the industry in line on this.”

Share article

View Comments

Jacobs Media is honoured to be the recipient of the 2020 Queen's Award for Enterprise.

The highest official awards for UK businesses since being established by royal warrant in 1965. Read more.