10 hours ago
Court update in Spain's battle with airlines over controversial charges for larger bags
A Spanish court has temporarily blocked a government-imposed fine on budget airlines, including Ryanair, over controversial charges for larger cabin bags.
The consumer ministry had levied the penalty, arguing that practices such as charging passengers for carry-on luggage violated customer rights. However, the airlines appealed the decision, prompting the court to intervene.
The court ruled that it was currently impossible to fully resolve the complex issue, and that forcing the airlines to pay the fine while their appeal was ongoing would place undue financial strain on the companies. This injunction means the airlines' current baggage policies can remain in effect until a definitive ruling is made, marking an initial victory for the carriers in their challenge against the Spanish government.
Ryanair and Norwegian Air logged the appeal after they were fined 109.6 million euros ($128.40 million) last year, saying they believe the fine has no basis.
Irish carrier Ryanair, Europe's largest in terms of passengers, said at the time that 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.
Madrid's administrative court ordered both airlines to issue bank guarantees worth 111.8 million euros, equivalent to the sanctions plus interest, while the suspension is in place, it said in a statement.
Industry group ALA praised the court's decision and claimed that the fines have no basis. It argued the fines "limit customers' ability to choose, and distort (the European Union's) common market". It said airlines would continue their charging policy until a final ruling is issued.
Other airlines were also fined by Spain's consumer rights ministry last year. ALA said it hoped the court ruling will be later applied to all airlines.
The ministry imposed a combined sanction of 179 million euros to all the airlines, which also included IAG's low-cost unit Vueling, easyJet, and Volotea.
It argued they violated customers' rights when charging for larger carry-on bags, picking seats or boarding pass print-outs and not allowing cash payments at check-in desks or to buy items on board.
