Friday, November 22, 2024
Business

Michael O’Leary blasts ‘ancient 1960s law’ as Spain slaps Ryanair with €108 million fine over ‘abusive’ baggage and seating charges

Ryanair CEO Michael O’Leary has slammed the Spanish government for what he called a politically motivated attack after his airline was fined a staggering €108 million for its “abusive” baggage and seating charges.

Spain’s consumer rights ministry announced on Thursday that Ryanair had been slapped with a nine-figure penalty for its seating and baggage practices, having rejected a previous appeal. 

Competitor budget airlines EasyJet and Vueling received respective fines of €29 million and €39 million. In total, European airlines face a €179 million fine from the Spanish ministry, with Norwegian and Volotea facing smaller fines.

Ryanair and other low-cost airlines charge customers extra to take additional baggage on board and to select a seat, or risk being placed away from their travel companion. 

In a statement shared with Fortune, Ryanair said it had instructed its lawyers to immediately appeal what it called the “unlawful and baseless” fines.

“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,” O’Leary said.

The ministry first announced a fine in May following a 2023 investigation into low-cost carriers’ passenger practices after claiming it found “very serious” infringements on Spanish consumers’ rights. 

Spain’s airline industry group, the ALA, opposed the ruling when it was first implemented in May, and has again vowed to fight the ruling following the latest announcement.

O’Leary says Ryanair uses baggage and seating fees to change passengers’ behaviors, which allows the airline to keep prices low.

“These illegal Spanish fines, which are based on an ancient 1960’s law which predated Spain joining the EU, would destroy the ability of low cost airlines to pass on cost savings to consumers via lower fares.”

In September, a Barcelona court ruled that Ryanair’s policy of allowing passengers to carry one cabin bag free of charge was legal. Ryanair viewed this ruling as a victory in its fight against the Spanish consumer rights ministry. 

Dara Brady, Ryanair’s chief marketing officer, said at the time: “It is essential for air safety that airlines are free to limit cabin bags to those which can be safely stored onboard. Spain’s Consumer Minister cannot invent new rules which undermine EU safety or breach EU law.” 

Representatives for ALA, EasyJet, and Vueling didn’t immediately respond to a request for comment.

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