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Spain Hits Budget Airlines with $179 Million Fine for "Unfair Practices"

Friday, November 22, 2024 by Henry Cruz

The Spanish Ministry of Consumer Affairs, under the leadership of Pablo Bustinduy, has imposed a record-breaking fine of 179 million euros on five low-cost airlines: Ryanair, Vueling, EasyJet, Norwegian, and Volotea. These airlines are being penalized for practices deemed unfair, such as charging extra for carry-on luggage and for reserving adjacent seats for children or dependents.

Ryanair received the largest penalty, amounting to 107,775,777 euros, followed by Vueling with 39,264,412 euros, EasyJet with 29,094,441 euros, Norwegian with 1,610,001 euros, and Volotea with 1,189,000 euros. According to ministry sources, these fines were calculated based on the unlawful profits gained from such practices, ensuring both proportionality and a deterrent effect.

Consumer Harm and Airline Tactics

The airlines have been fined for several actions considered harmful to consumers, including:

  • Charging extra fees for carry-on luggage in the cabin
  • Additional charges for reserving adjacent seats for minors or dependents
  • Imposing excessive fees for printing boarding passes at airport terminals
  • Lack of clear pricing information, making it difficult to compare offers
  • Banning cash payments in Spanish airports

In Ryanair's case, an excessive charge for printing tickets at terminals when passengers lacked a physical copy was also noted.

Enforcement and Industry Reaction

This marks the first time the Ministry of Consumer Affairs, with sanctioning authority since June 2022, has issued fines of "very serious" nature in the consumer sector. Alongside the financial penalties, the continuation of these practices has been expressly forbidden.

Despite the airlines' objections, labeling the measure as "disproportionate," the ministry has defended its decision as an effort to safeguard consumer rights. Bustinduy affirmed, "No company, no matter how large, is above the law." He also emphasized the ministry's commitment to imposing penalties whenever user rights are violated.

Javier Gándara, president of the Airline Association (ALA), announced that the airlines would appeal the sanctions and seek temporary relief. Gándara highlighted that these measures could negatively impact the Spanish aviation and tourism sectors.

Legal Proceedings and Future Implications

The sanctioned companies have two months to file appeals with the Contentious-Administrative Chamber of the National Court. If they fail to do so, the fines will become final. This case sets a precedent in consumer sanction enforcement in Spain and underscores the government's priority on consumer rights. The aviation industry's response is anticipated, and it remains to be seen whether these measures will successfully deter future unfair practices.

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