Today, Spain’s Ministry of Consumer Rights fined five low-cost airlines $179 million Euros ($186 million). The fines resulted from reported “abusive practices” such as extra fees for cabin luggage. The fines could test budget airlines’ business model, which offers lower ticket prices but charges extra for things like larger carry-on bags, which are typically free.
Industry group and airlines dispute the fines
Irish Airline Ryanair received the largest fine at 107.78 million euros. Next was Spanish budget carrier Vuelta, at 39.2 million euros. Easyjet was charged 29 million Euros, while Scandinavian airline Norwegian and Spanish carrier Volotea were each fined over one million Euros. While the Ministry of Consumer Rights defended its decision, industry groups challenged it.
The ministry said the airlines should stop charging for cabin luggage or reserving a seat near a dependent traveler. It also reprimanded the airlines for “disproportionate and abusive” fees for printing tickets, reportedly not denoting clear pricing on their websites, and disallowing cash payments at Spanish airports.
However, the airlines and industry groups opposed the fines. Ryanair CEO Michael O’Leary said the punishments “have been invented by Spain’s Consumer Affairs Ministry for political reasons, are clearly in breach of EU law.” He added, “The success of Ryanair and other low fare airlines in Spain and across Europe in recent years is entirely due to Europe’s Open Skies regime and the freedom of airlines to set prices and policies without interference from national Governments which is what today’s illegal Spanish fines are.”
Spain’s Association of Airlines (ALA) planned to appeal the luggage fee fines in court. It’s President Javier Gandara said “If implemented, the resolution of the Ministry of Consumer Rights would imply irreparable damage to [the] passenger, an attempt against their freedom to tailor their voyage depending on their needs, and an obligation to pay for services that they might not need.”