Sanction on four airlines for suitcases opens gap between socialist and Sumar ministries | Economy

Correction by the Ministry of Social Services and Consumer Affairs against Ryanair, Vueling, Easyjet and Volotea with a fine of 150 million for some of their commercial actions, especially for charging for small suitcases (cart) into the aircraft cabin, not only fell like a bomb in the air sector. The scope and timing of the introduction of sanctions in the midst of the election campaign for the European Parliament opened a gap in…

Correction by the Ministry of Social Services and Consumer Affairs against Ryanair, Vueling, Easyjet and Volotea with a fine of 150 million for some of their commercial actions, especially for charging for small suitcases (cart) into the aircraft cabin, not only fell like a bomb in the air sector. The scope and timing of the sanctions, at the height of the European Union election campaign, opened a gap between the socialist ministries and those of Soumare. This has also placed the Spanish executive at the center of attention of the European Commission (EC) and influential lobby aviation companies such as IATA and A4E.

While Zumara’s minister in charge of consumer policy, Pablo Bustinduy, advocates action “strongly” in this case, as he said last Tuesday, the departments of transport and tourism, led by Oscar Puente and Jordi Jereu, are trying to reassure: with guarantees of legal security , a sector they consider strategic for the country’s economy and connectivity.

The socialist side of the coalition government was held back for days in the middle of the election process by avoiding disavowing consumption, but a senior official said he favored finding a balance between protecting consumer rights and guaranteeing equal rights to companies. conditions in relation to the rest of the European Union (EU). In fact, in Brussels they are going to demand that the EC harmonize the rules regarding baggage and standardize the volume and weight of suitcases subject to payment on flights for the entire common territory.

Such guidance manifests itself as commitment in communications sent by the government to sanctioned firms. Given the fine, which is seen as a historic victory for consumer organizations, it is necessary to file an appeal and, as a result, open legal proceedings. Minister Bustinduy talks about “all procedural guarantees” for companies, and the Airlines Association (ALA) hopes for a clear victory in the courts.

The request for EC action, led by transport, had previously come from the European Parliament, leading to the start of negotiations between the community regulator and the aviation sector. In Brussels the companies are represented by IATA and A4E. With negotiations already underway, the Socialists of the Council of Ministers are unhappy that consumption is sidelining Spain, whose tourism depends on road traffic. budget, with a position opposite to the segmentation (additional payment for different concepts) of ticket prices. At the beginning of the year, government president Pedro Sánchez was able to express airlines’ concerns about baggage issues. This was in meetings with representatives of Ryanair and IAG, in which both sides promised multimillion-dollar investments in Spain.

In parallel, various sources claim that the EU Directorate General of Transport has had contacts with the Spanish civil aviation authority, showing interest in the process carried out by Consumption, which may be contrary to Community rules. IATA has finally written to the executive in a letter sent to three government ministries warning of a storm that threatens air transport.

Among those affected, the scenario of market distortion claims is being examined in light of the government’s actions, which, if fined, only affect four of the many European airlines that charge for cabin baggage, and are limited to Spain’s explicit ban on the practice. One problem is how to implement this measure on flights from countries where there is no relevant regulation.

Months of stress

The consumer resolution has been dogging Ryanair, Vueling, Easyjet and Volotea for more than a year. In July 2023, they had already learned of the proposed sanctions, which they unsuccessfully opposed. With the resolution in hand, they now believe the rules are on their side, according to Airline Association (ALA) president Javier Gandara.

The companies refer to Regulation 1008/2008 of the European Parliament and of the Council on the general rules of air transport, which maintains tariff freedom (Article 22(1)). It was 2013 when the EU’s DG Transport approved a bag charge, which Wizz Air then initiated, as long as the traveler was clearly informed. But OCU and Facua, as consumer platforms, are clinging to Spanish air navigation and consumer protection laws, demanding free cart on board. Ryanair, which reportedly bears the highest financial penalties in consumer affairs, has received verdicts in recent months in the courts of Madrid, Valladolid, Santander, Pontevedra, Pamplona, ​​Vitoria, Las Palmas de Gran Canaria, Malaga, Valencia, Ourense , Leon, Seville and San Sebastian, which support the legality of prices for luggage exceeding certain sizes introduced by the Irish firm in 2018. In his message to Transport, Tourism and Consumer Affairs, IATA Vice-President Raphael Schwartzman states that Community rules take precedence over any conflicting national laws.

In recent days, the ALA warned that the resolution “contradicts the consumer’s ability to choose.” The association estimates that 55 million travelers in Spain will be affected by higher ticket prices if it is forced to scrap the basic fare intended for those traveling exclusively with a bag or backpack, which companies consider hand luggage. This increase, they explain, will be due to the higher cost of baggage handling: “There is barely enough space for 90 seats on 180-seat planes designed for short flights. carts

This means luggage has to be transported into the cabin, resulting in additional staff costs and delays.”

Legal loophole

Transport and Consumer Affairs share powers over the relationship between airlines and travellers, as reflected, for example, in the government’s parliamentary response in August 2022.

It was then noted that section 97 of the Air Navigation Act 48 of 1960 provides that “articles and carry-on baggage carried by a traveler with him or her will not be considered as baggage for this purpose (for a fee). The carrier will be obliged to carry free of charge in the aircraft cabin as hand luggage items and packaging that the traveler carries with him, including items purchased in stores located at airports. But the legal text offers the option to deny boarding of these items “for safety reasons related to the weight or size of the object depending on the characteristics of the aircraft.”

The executive branch also recognized a legislative gap: “It is not defined what should be understood by items and hand-held packages for which special rules have been established for free carriage, carriage in the cabin and denied boarding.” And he added that the contract of carriage must include “the company’s requirements for hand luggage.”

Given such a position, there would be little room for fines, but in the same government response to the then deputy of the Mixed Group, Pablo Cambronero, it was stipulated that “the use of general contract provisions, the guarantee of the fundamental rights of any consumer in relation to any service, compliance with advertising rules and others related issues” – issues related to consumption and user protection that are beyond the authority of the Ministry of Transport.

Follow all the information Economy And Business V Facebook And Xor in our weekly newsletter