Spain’s ban on unbundling by airlines will harm consumers by raising air fares for all
Spain is fining five low cost airlines for what it calls "abusive practices[,] such as charging extra for hand luggage or for reserving adjacent seats to accompany dependent persons".
The fines on Ryanair, Vueling, easyJet, Norwegian and Volotea are only small percentages of their annual revenue - but banning these ancillary services attacks the LCC model and its profitability.
Moreover, almost all airlines adopt an unbundling approach to a greater or lesser extent.
The decision has been condemned by airline bodies such as IATA and Spain's airline association ALA, as well as by Ryanair. The affected airlines are appealing the decision, and are confident that Spain is contravening EU law.
ALA has observed that the decision would effectively force 50 million passengers who do not take a trolley bag as cabin luggage to pay for a service they do not need.
Spain's misguided attempt at consumer protection will raise prices for all - the opposite effect to what was intended.