In a significant move to protect consumer rights, Spain’s Consumer Rights Ministry has imposed a total of €179m in fines on five budget airlines, including Ryanair, EasyJet, Vueling, Norwegian, and Volotea. The fines, which are the largest ever issued by the ministry, are a result of an investigation into the airlines’ “abusive practices” such as charging for hand luggage and reserving seats for children.
Ryanair, the largest low-cost carrier in Europe, has been hit with the largest fine of €108m, followed by EasyJet’s penalty of €29m. Vueling, Norwegian, and Volotea have also been fined €39m, €1.6m, and €1.2m respectively.
The ministry has accused the airlines of providing misleading information and not being transparent with prices, making it difficult for consumers to compare offers and make informed decisions. The fines were calculated based on the “illicit profit” obtained by each airline from these practices.
The airlines have vowed to appeal the decision, with Ryanair’s CEO Michael O’Leary calling the fines “illegal” and “baseless”. However, the ministry has defended its decision, stating that it is based on Spanish and EU law.
The move has been welcomed by consumer rights groups, with Facua, a Spanish consumer association, calling the decision “historic”. The association has been campaigning against the fees for six years and sees the fines as a major victory for consumers.
The fines are a significant blow to the budget airline industry, which has long been criticized for its opaque pricing practices. The move is likely to have far-reaching implications for the industry, with airlines being forced to rethink their pricing strategies and become more transparent with consumers.