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Airlines angry after Spain slaps 7 million in fines on low-cost carriers
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Airlines angry after Spain slaps $187 million in fines on low-cost carriers

  • The Spanish Ministry of Consumer Affairs has imposed a total fine of 179 million euros on five low-cost airlines.
  • The fines concern Ryanair, Vueling, easyJet, Norwegian and Volotea.
  • The ministry accused airlines of “abusive practices”, including charging extra fees for hand luggage.

Airlines are furious over a decision by Spain’s Consumer Affairs Ministry to fine budget airlines for what they call “abusive practices” such as charging surcharges. hand luggage costs.

The fines, which affect Ryanair, Vueling, easyJet, Norwegian and Volotea, amount to 179 million euros (around $187 million).

Ryanair faces the highest fine, approximately 107.8 million euros ($112.3 million). Vueling was fined €39.3 million ($40.9 million), easyJet €29.1 million ($30.3 million), Norwegian €1.6 million euros ($1.7 million) and Volotea at 1.2 million euros ($1.3 million).

This decision led to significant reluctance in the industry.

The International Air Transport Association (IATA) condemned the move, saying it undermined pricing freedom.

Willie Walsh, IATA’s chief executive, called it “a slap in the face to travelers who want choice.”

“Banning all airlines from charging for carry-on baggage means the cost will be automatically baked into all tickets,” Walsh said.

In a statement to Business Insider, an easyJet spokesperson said the budget carrier would appeal the decision and found the proposed sanctions “outrageous.”

“All our customers can bring a small carry-on bag free of charge, giving them the flexibility to only pay for what they want,” they added.

A Norwegian spokesperson said the company also strongly disagreed with the decision and would follow up with Spanish and European authorities.

“Norwegian is committed to providing safe and affordable travel, and our baggage policy reflects this,” they said.

Ryanair CEO Michael O’Leary called the fines “unlawful and baseless”.

He said such fines would “destroy the ability of low-cost airlines to pass on cost savings to consumers through lower fares.”

The company said it had instructed its lawyers to immediately appeal the baggage fines.

Vueling referred further requests for comment to the Asociación de Líneas Aéreas (ALA). BI has contacted ALA for comment. Volotea did not immediately respond to a request for comment from BI.

Spain’s Consumer Affairs Ministry said the fines were calculated based on the “illicit profit” each airline obtained from the sanctioned practices, including the imposition of extra fees for carry-on baggage and for booking flights. a seat near a dependent or minor.

He also criticized carriers for a number of other alleged problems, including banning cash payments at Spanish airports and requiring passengers to pay “disproportionate” fees to print their boarding passes in airports.

The ministry added that airlines should stop implementing the mentioned practices.

Airlines have two months to appeal the decision, the ministry said.