Walter Finch
THE European Commission has launched legal action against Spain over a €179 million penalty imposed on budget airlines for charging passengers extra for hand luggage and seat reservations.
It was confirmed today (Wednesday) that the Brussels body has opened infringement proceedings, arguing that Spain’s Air Navigation Law, which restricts airlines’ freedom to set prices, is in conflict with EU directives.
The sanction at the centre of the dispute was handed down almost a year ago against Ryanair, Vueling, Easyjet, Norwegian and Volotea.
The Spanish government accused the carriers of abusing passengers by demanding surcharges for carrying cabin bags or for reserving adjacent seats so that dependants could sit with their carers.
But Brussels says the law underpinning the fine is incompatible with EU competition rules, which give airlines the right to set their own commercial pricing.
The Commission has now sent Madrid a formal ‘reasoned letter’ – the first stage of a three-step infringement procedure.
It gives the Spanish authorities two months to explain themselves and respond to the concerns raised by EU officials.
If Spain refuses to back down, Brussels can move to the second stage by issuing a formal reasoned opinion, again giving a deadline for compliance.
Should the impasse continue, the Commission can escalate the case to the Court of Justice of the European Union in Luxembourg, where Spain could face a binding judgment and possible penalties.
The case highlights the long-running battle between Spain and low-cost carriers, particularly Ryanair, over the boundaries of passenger rights and airport fees.
Consumer groups in Spain hailed the government’s attempt to crack down on what they see as abusive practices, while airlines insist they must remain free to design pricing structures that keep basic fares low.
With Brussels and Madrid now on a collision course, the future of Spain’s €179 million sanction will hinge on whether the European courts side with passenger protections or with the single market’s commitment to free pricing.
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