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Spain fines ‘abusive’ budget airlines 179 million euros

Ryanair, which was the first to start charging extra hand luggage in November 2018, was hit with a hefty fine (John MACDOUGALL)

Spain’s leftist government said on Friday it had fined five budget airlines including Ryanair and EasyJet 179 million euros ($187 million) for “abuses” such as charging passengers for hand luggage.

Carriers, including Spanish airlines Volotea and Vueling and Norwegian Air, were also fined for charging passengers to reserve seats next to children and other dependents and not accepting cash when selling tickets at airports, the consumer rights department said.

Irish no-frills carrier Ryanair, which was the first to start charging extra hand luggage in November 2018, was hit with a hefty fine of €107.8 million.

Vueling — part of the International Airlines Group which also owns British Airways — was ordered to pay 39.3 million euros.

EasyJet was fined 29.1 million euros, Norwegian Air 1.6 million euros and Barcelona-based Volotea 1.2 million euros.

The fines will also provide misleading information and price transparency that “impedes consumers’ ability to compare offers” and make informed decisions, the department said.

Ryanair has been specifically fined for charging passengers a “flat rate” for printing their boarding passes at airports when they don’t have them.

The airline announced it would immediately appeal the fines. Its manager Michael O’Leary criticized them as “unlawful and unfounded” and said the Department of Consumer Affairs was forcing them for “political reasons”.

EU courts have protected carriers’ freedom to set prices and policies without government interference, and the fines will “destroy the ability of low-cost airlines to pass on cost savings to consumers through lower fares”, O’Leary added in a statement.

Spain’s aviation industry association ALA said the “absurd” decision had put airlines in a critical situation and confirmed they would file an appeal.

The baggage rules will remain unchanged until the courts decide, the ALA added.

The consumer rights organization, Facua, which campaigned against these charges, applauded this decision as “historic”.

“These penalties are the highest ever applied by consumer protection authorities,” it added in a statement, saying that passengers can now seek reimbursement for these costs.

Different penalties are calculated based on the “unlawful profit” each airline earned from these practices.

The Department said it has maintained the fines that were first announced in May and dismissed the previous applications filed by the companies.

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