Categories: Business

Historic $150 million fine for Ryanair, Volotea, Vueling and EasyJet for charging for hand luggage | Companies

A historic fine has been imposed on four low-cost airlines for charging passengers for carry-on luggage. According to the BE Network, the Ministry of Consumer Affairs has fined Ryanair, Volotea, Vueling and EasyJet more than €150 million for actions such as charging for luggage on board or for choosing a seat when a traveler is accompanied by children. This is the largest consumer sanction ever imposed by consumer protection authorities, consumer protection organizations Facua and OCU said in a note.

The largest fine was received by Ryanair, which was the first to charge for hand luggage in November 2018. It was followed, according to Facua, by Vueling and then, further afield, by EasyJet and Volotea. This concludes a case that Consumption opened in June 2023 to investigate whether the company’s actions were abusive or unfair, and whether they were generally against the rules. However, airlines can appeal first to the Minister of Cassation and then to the National Court.

A spokesman for the Ministry of Social Rights, Consumption and the 2030 Agenda confirmed that cases were brought against four “low-cost” airlines in the summer of 2023 due to complaints received from consumer organizations, although he did not specify which companies were affected, or financial situation. amounts. The Ministry explains that the purpose of these cases was to investigate four practices that could be considered abusive: charging additional fees for reserving adjacent spaces to accompany minors and dependents; lack of transparency of pre-contractual information about the final price of the service; charge passengers an additional fee for hand luggage and do not allow cash payment at the airport for certain additional services.

The Airlines Association (ALA), which represents 85% of air travel in Spain, “explicitly rejected the intention” of the ministry “to fine this practice with disproportionate amounts, as it would harm consumers by depriving passengers of the opportunity to hire exactly what they need.” “So the nearly 50 million passengers who today do not carry a suitcase in the cabin and travel with only an under-seat carry-on bag cannot benefit from paying only for essential services, forcing them into contracts for services they do not use. “, the organization said in a statement.

The fine sanctions four practices that are also now technically prohibited, although they continue to be used by airlines. budget. First, it penalizes and prohibits charging for carry-on baggage on board an aircraft, which is a basic sanctioned violation that is classified as “abuse.” The department notes that, based on current legislation and judicial practice, airlines have the right to determine the dimensions and weight of hand luggage that can be carried on board, but cannot charge an additional fee for this luggage, OCU points out.

Consumption also includes seat selection fees when the traveler is accompanied by dependents such as children. The sanction states that it could lead to “harm to vulnerable people” who could be left in a “helpless situation” if they are allocated separate places. Third, the ministry fines for “lack of transparency of contract information,” meaning the price that appears on the first screen is much lower than at the end of the payment process. According to the file accessed by the ERT, this is “an unfair commercial practice that interferes with the comparability of offers and consumer decision-making.” Fourthly, it is authorized to prohibit cash payments when purchasing tickets at airports.

The sanction also contains a “particular rebuke” to Ryanair’s practice of charging 20 euros to passengers for whom it prints a paper ticket, SER said. It is argued that “requiring disproportionate costs for reprinting a boarding pass is an abuse because it does not correspond to the actual costs incurred by the company and creates an imbalance between the rights and obligations of the parties.”

An investigation began in 2023 by the General Directorate of Consumer Affairs, which analyzed what it considered “abuses” following complaints from user associations such as Facua. Consumption sent proposed sanctions to four airlines and reasons to the affected companies. The airlines then had the right to bring charges against the General Secretariat for Consumer Affairs and Gambling. The General Secretariat examined the allegations and proposed resolutions of the General Directorate of Consumer Affairs and published a resolution, which was communicated to the affected airlines several weeks ago.

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