Spain Fines LCCs €179M for “Abusive” Practices

DALLAS — The Spanish government has fined Low-cost carriers (LCC) Ryanair (FR), Vueling (VY), easyJet (EC), Norwegian Air Shuttle (DY), and Volotea (V7) €179 million for "abusive" practices, including charges for larger cabin bags and adjacent seating for passengers with disabilities or children. 

Ryanair received the largest fine of nearly €108 million, followed by VY (€39.3M), EC (€29M), DY (€1.6M), and V7 (€1.2M).

Spanish officials intend to ban such practices, with Minister Pablo Bustinduy emphasizing that consumer rights must not be violated. However, airlines have strongly criticized the fines, claiming they contradict EU laws on pricing freedom.

Pushback

IATA's director general, Willie Walsh, and Spain’s ALA aviation association argue the move undermines the free market and could harm consumers by embedding costs into ticket prices.

BTN Europe cites Walsh as saying, “Prohibiting all airlines from charging for cabin bags means that the cost will be automatically priced into all tickets. What’s next? Forcing all hotel guests to pay for breakfast? Or charging everyone to pay for the coat check when they buy a concert ticket?”

Ryanair CEO Michael O'Leary called the fines "illegal" and vowed to appeal. Meanwhile, the Irish ULCC faced scrutiny in Italy for its €55 airport check-in fee. After an investigation, the carrier agreed to reimburse affected passengers and clarify its check-in policies.

It remains to be seen if the Spanish ban on LCC ancillary charges will take effect and leave the aforementioned “airlines operating in this country at a competitive disadvantage.”