Ryanair and easyJet are among a number of budget airlines fined almost £150 million for ‘abusive practices’ including charging for carry-on bags.
Spain’s consumer rights ministry said the airlines violated customers’ rights by forcing them to pay for carry-on luggage, seat selection and boarding pass print-outs as well as not allowing cash payments at check-in desks or onboard.
Ryanair was hit with the biggest fine of €108 million (£90 million), followed by easyJet who have been told to pay €29 million (£24 million).
Norwegian, Vueling and Volotea were also fined.
The fines are a challenge to budget airlines’ business model, which hinges on very low ticket prices while charging for extras like larger hand luggage that was traditionally included in the price.
Irish carrier Ryanair said it would take its appeal to Spain’s courts.
‘These illegal and baseless fines, which have been invented by Spain’s Consumer Affairs Ministry for political reasons, are clearly in breach of EU law,’ said its CEO, Michael O’Leary.
He added that the practices being challenged were vital cost savings that are passed on to customers in the form of low prices.
Javier Gandara, the head of industry group ALA, said all the airlines would appeal against the fine for cabin baggage charges, though not all would challenge other measures such as forcing airlines to accept cash when selling items on board.
ALA called the ministry’s decision ‘nonsense’ and said it violated free market and EU rules.
It added the move would force as many as 50 million passengers travelling with just a small bag to pay for services they do not need.
The decision would hurt the Spanish travel industry, as no other EU country prevents extra charges for large carry-on bags, Gandara said.
However, countries like Italy have limited some budget airline practices.
In August, Ryanair lost an appeal against a ban on extra fees for seat reservations next to children under 12 or people with disabilities.
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