HEALTHPLAN MAGAZINE

After weeks of careful examination, Spain's Ministry of Consumer Affairs has taken a significant step forward by initiating proceedings against multiple 'low-cost' airlines operating within the country. The primary focus of the investigation revolves around the contentious issue of hand luggage charges for items carried in the cabin. Headed by Alberto Garzón, the ministry has refrained from disclosing the list of implicated companies; however, it previously hinted that these carriers collectively hold a market share exceeding 30 percent.

Among the airlines subject to complaints are industry giants such as Ryanair, Vueling, easyJet, Volotea, and Eurowings, according to statements by the consumer association Facua. Notably, Eurowings appears to have been excluded from the list of airlines currently under prosecution.

Beyond the core concern of hand luggage fees – which typically apply to items not exceeding 40cm x 30cm x 15cm, accompanied by a personal accessory like a handbag – the Ministry of Consumer Affairs is also addressing additional charges frequently imposed on services traditionally considered integral to the ticket price. This encompasses practices like reserving adjacent seats for dependents.

The Ministry highlights a recurring trend observed among these airlines, where they unbundle services and levy supplementary charges, often leading to strikingly competitive advertised prices that deviate from the ultimate sum paid by consumers. This pricing irregularity further elevates these carriers in online search engine rankings, unfairly overshadowing competitors who offer more transparent fee structures within their initial prices.

Responding to these proceedings, the Airline Association (ALA) promptly asserted the legality of these commercial strategies, asserting that they adhere to European regulations that uphold the freedom to establish fares. The ALA contends that passengers maintain a clear understanding of the flight's cost from the outset, enabling them to selectively opt for necessary services and incur charges accordingly.

The aviation industry is grappling with palpable uncertainty as potential penalties range from 10,000 to 100,000 euros for severe violations, escalating to a staggering one million euros for exceptionally grave offences. In cases where profits garnered from these practices surpass these thresholds, fines could surge up to eightfold the amount of the profit, amplifying the severity of repercussions.

These actions contravene Article 47 of the Consolidated Text of the General Law for the Protection of Consumers and Users, falling under the jurisdiction of the Ministry of Consumption.

The origin of this initiative traces back to an investigation catalysed by a formal grievance filed by Facua in October 2021, singling out Vueling's methodology regarding charges for hand luggage. Worth noting, Facua had previously raised objections against Ryanair and Wizz Air in 2018, addressing these concerns with the State Agency for Aviation Safety and Competition.

Facua underscores that the alleged infringements contravene the Air Navigation Act, which stipulates that "the carrier shall be obliged to carry free of charge in the cabin, as hand luggage, the objects and packages that the passenger carries with them." Exceptions are limited to "safety reasons, linked to the weight or size of the object in relation to the characteristics of the aircraft".

As Spain's Ministry of Consumer Affairs forges ahead with this comprehensive investigation, the outcome could potentially reshape the landscape of 'low-cost' airline practices, ultimately aiming to ensure a more transparent and equitable experience for air travellers.

Sources

https://www.surinenglish.com/spain/spain-opens-case-against-lowcost-airline-hand-20230804122139-nt.html
https://www.reuters.com/business/aerospace-defense/spain-probe-budget-airlines-over-hand-luggage-fees-2023-08-03/
https://www.eldiario.es/economia/consumo-abre-expediente-sancionador-aerolineas-lowcost-cobro-equipaje-mano_1_10427305.html