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Budget airlines Ryanair and Easyjet face fines for baggage-related infractions.

Unacceptable behavior.

The fines represent a challenge for the business model of low-cost airlines.
The fines represent a challenge for the business model of low-cost airlines.

In Spain, passengers have long felt that the cost of larger hand luggage is unfair, especially when budget airlines like Ryanair insist on it. But now, the consumer protection agency has put an end to this and fined the airlines involved.

The total fine from Spanish authorities amounts to 150 million euros and includes airlines such as Ryanair, EasyJet, Vueling, and Volotea. Two consumer organizations, OCU and Facua, who have been protesting against these tactics by low-cost airlines for the past six years, praised the decision.

It's expected that other European countries may also take a similar stance in the upcoming months and penalize these "unfair practices." The Spanish airline lobby (ALA) spoke out against the government for breaking EU internal market rules and the freedom of companies to establish their own prices. The Consumer Protection Ministry in Madrid has not yet commented on the matter. Ryanair, Volotea, and Vueling have since refrained from commenting and deferred to ALA.

Penalties for luggage fees

The airlines were found guilty of violating consumer rights by the Consumer Protection Ministry. They were levied fees for larger hand luggage, choosing seats, and using printed boarding passes. Both OCU and Facua have been on a crusade against these practices since 2018, while the ministry launched an investigation last year.

"We stand up for the right of the consumer to make their own travel decisions," said ALA President Javier Gandara. In response to the Ministry's decision, up to 50 million passengers who only travel with a carry-on under their seat could be forced to pay for services they don't need.

For several years, a Spanish court had deemed Ryanair's hand luggage fee policy to be "unfair." Yet, despite the ruling, Ryanair persisted and cited the right of airlines to determine the size of hand luggage for their own benefits.

These fines threaten to disrupt the business model of budget airlines. The model is built around offering low ticket prices but making up for it through charges for larger cabin bags or other services. The future of this model now hangs in the balance.

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Due to the fines issued by Spanish authorities, budget airlines like EasyJet and Ryanair, along with Vueling and Volotea, have faced penalties for their baggage-related fees. These airlines were found guilty of violating consumer rights, charging fees for larger hand luggage, seat selection, and printed boarding passes.

In response to these fines, low-cost airlines such as EasyJet and Ryanair may need to reconsider their business models, which rely on low ticket prices but generate revenue from additional charges.

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