Business and Economics

Spain issues ‘historic’ fine for budet airlines that charge for hand luggage

Spain has issued “historic” fines to five budget airlines for “abusive practices” including charging for hand luggage.

Ryanair, easyJet, Vueling, Norwegian and Volotea were all issued with sanctions by Spain’s Consumer Rights Ministry on Friday (22/11).

The fines were issued because the airlines were found to have provided misleading information and were not transparent with prices, “which hinders consumers’ ability to compare offers” and make informed decisions, the ministry said.

Ryanair was accused of violating a range of consumer rights, including charging for larger carry-on luggage, seat selection, and asking for “a disproportionate amount” to print boarding passes at terminals.

Each fine was calculated based on the “illicit profit” obtained by each airline from these practices.

  • Ryanair €179 million (£149 million)
  • easyJet €29 million (£24 million)
  • Vueling €39 million (£32 million)
  • Norwegian Airlines €1.6 million (£1.3 million)
  • Volotea €1.2 million (£1 million)

The ministry said it plans to ban practices such as charging extra for carry-on hand luggage and reserving seats for children.

Responding to the charges, Ryanair boss Michael O’Leary said the fines were “illegal” and “baseless”, adding that he will appeal the case and take it to the EU courts.

“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,” he said.

Easyjet and Norwegian said they would also appeal the decision.

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Jack Peat

Jack is a business and economics journalist and the founder of The London Economic (TLE). He has contributed articles to VICE, Huffington Post and Independent and is a published author. Jack read History at the University of Wales, Bangor and has a Masters in Journalism from the University of Newcastle-upon-Tyne.

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Tags: Ryanair