Spain Cracks Down On Budget Airline “Abusive Practices” With €179 Million In Fines
The Spanish government´s Ministry of Consumer Affairs has announced that five budget airlines operating in the country have been fined a total of €179m for “abusive practices” including charging for overhead hand luggage.
Ryanair has been given the largest fine of €108m, followed by IAG owned Vueling with a fine of €39 million and EasyJet’s penalty of €29m.
Norwegian and Spanish owned Volotea were issued with lesser sanctions of €1.6 and €1.2 million respectively.
The crackdown on the budget airline sector follows a series of court cases brought by consumers for “abusive practices” and marks the first “very serious” penalty of its kind by the Spanish government under its new consumer protection laws.
The ministry cited several consumer violations including:
- Charging for carry-on luggage
- Reserving seats for minors or dependent passengers
- High fees for printing boarding passes at the airport
- Obscure pricing
- Not accepting cash payments at Spanish airports
According to the ministry, these practices violate Spain’s General Law for the Protection of Consumers and Users and are considered detrimental to customer rights. The fines reflect the companies’ profits from these practices, with the ministry noting that penalties for “very serious” infractions.
Ryanair, which received the largest fine, has announced its intention to appeal the decision. CEO Michael O’Leary labeled the fines as “illegal and baseless,” accusing the Spanish government of acting for political reasons. He argued that Ryanair’s baggage policies have been validated by Spanish and EU courts.
O’Leary further claimed that the fines contradict the principles of the EU’s Open Skies policy. This allows airlines to set their own pricing and policies. He emphasized that these additional fees help reduce overall ticket prices, benefiting all consumers.
Spain’s Airline Association (ALA) echoed Ryanair’s stance, calling the decision “nonsense” and a violation of free market and EU rules. The group warned that such measures could force passengers without additional luggage to pay for services they do not require.
Consumer Affairs Minister Pablo Bustinduy has defended the fines, highlighting that this is the first instance where “very serious” sanctions have been enforced for consumer rights violations. The ministry insists that the penalties aim to curb unfair practices and encourage transparency in airline pricing.
Bustinduy emphasised that the decision ends the administrative phase of the process, leaving the airlines with the option to appeal the fines through Spain’s judicial system within two months.
The fines pose a significant challenge to the business models of low-cost airlines, which rely on supplemental fees for services traditionally included in ticket prices. The ruling could set a precedent for stricter regulations on airline pricing strategies, not just in Spain but potentially across Europe.
