Spain has fined five budget airlines, including Ryanair, a total of €179m (£150m) for charging passengers for hand luggage and seat reservations, prompting the Irish carrier to say banning the practices would “destroy” the ability to offer cheap tickets.
Spain’s Consumer Rights Ministry announced the sanctions on Friday, with Ryanair given the biggest fine, of €108m, and easyJet a penalty of €29m.
Vueling, the low-cost operation of the British Airways owner IAG, has been fined €39m, and Norwegian Airlines and Volotea have been fined €1.6m and €1.2m.
The ministry is upholding fines announced in May after dismissing appeals lodged by the low-cost airlines.
Ryanair said it had instructed lawyers to appeal against what it called the “baseless” fines.
The airline said the practices are permitted under European legislation, and that banning them would “destroy” the ability of low-cost operators to pass on cost savings to consumers through cheaper-priced fares.
Michael O’Leary, Ryanair’s chief executive, said: “These illegal and baseless fines, which have been invented by Spain’s Consumer Affairs Ministry for political reasons, are clearly in breach of European Union law. 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.”
O’Leary said the laws used to levy the fines were based on “ancient 1960s” legislation that pre-dated Spain joining the European Union.
“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,” O’Leary added.
A spokeswoman for easyJet said the airline also intends to appeal to the courts and will “vigorously defend” its position.
“We completely disagree with the Spanish Consumer Ministry and find the proposed sanctions outrageous,” she said. “We consider our bag policy to be in line with all applicable laws, and as such there is no change to our current cabin bag policy.”
EasyJet allows flyers to bring a small cabin bag for free, which she said “gives them the flexibility to only pay for what they want to”.
The Spanish Airlines Association (ALA), which represents airlines carrying 85% of air traffic to and from Spain, has previously said that the fines are “disproportionate”. On Friday, the association said it intends to appeal against the fines through the court system.
The ministry also said it was banning some of the practices for which the airlines have been fined, including charging extra fees for taking hand luggage on flights and reserving adjacent seats for children or other dependents.
“These are practices that, unfortunately, millions of people know first-hand and that consumer associations have been complaining about for years,” Pablo Bustinduy, who heads the ministry, told reporters on Friday. He said the minstry was sending “a very clear message, that no company, no matter how big or powerful, is above the law. And that there cannot be business models that are based on the violation of consumer rights or abusive practices.”
The €179m fine is the biggest sanction issued by Spain’s Ministry of Social Rights and Consumer Affairs and followed a wide-ranging investigation into practices in the low-cost airline industry.
The government investigation also looked at concerns around a lack of transparency by the airlines over the final price of services when booking online, and the decision to block cash payments at the airport for additional services. Consumer groups, including the Spanish non-profit Facua, have been campaigning for six years for the government to intervene.
