Brussels – On Wednesday, the European Commission initiated an infringement procedure against Spain concerning a 179 million euro fine levied nearly a year ago on Ryanair, Vueling, Easyjet, Norwegian, and Volotea for imposing extra charges for hand luggage and for reserving adjacent seats for dependent individuals.
The Commission views the Spanish Air Navigation Law as a restriction on price-setting freedom, granting Spanish authorities a two-month period to address the identified issues.
In comments released to the media and reported by Europa Press, Consumer Affairs Minister Pablo Bustinduy described the European Commission’s intervention as “regrettable,” asserting that it disregards the rights of European consumers without taking their voices into account.
The commencement of the sanction procedure is marked by a letter of summons initiating a two-month dialogue between Brussels and Madrid to address the discrepancies. This document urges the Spanish Government to align its national legislation with European laws regarding air services, which stipulate that airlines have the freedom to set their own prices.
If the issue remains unresolved, the Commission may escalate to the second phase, which involves issuing a reasoned opinion with a new deadline for dialogue, before possibly proceeding to the third and final stage, which could lead to the case being referred to the Court of Justice of the European Union (CJEU).
Officials from the Ministry of Consumer Affairs express skepticism regarding the Commission’s authority in this matter, arguing that the determination of sanctions’ validity or interpretation of EU law falls under the jurisdiction of the CJEU. These officials maintain that “this file does not alter the sanctions against the five airlines.”
Brussels has reiterated a ruling from the European High Court stating that hand luggage “should be, in principle, free,” as long as it adheres to reasonable weight and size limits as well as safety requirements. It further notes that hand luggage exceeding these “reasonable” limits is subject to airlines’ pricing freedom.
In this context, the Commission asserts that the Spanish Air Navigation Law prevents airlines from charging for hand luggage transport, “which restricts their ability to set prices and differentiate” between service options that include or do not include baggage allowances.
Moreover, the enforcement of fines on the five airlines is deemed to contravene European regulations, as such penalties are based on the air navigation law framework.
PRELIMINARY INVESTIGATION SINCE JANUARY
The situation dates back to January of last year when the European Commission began an “informal” dialogue under the ‘EU Pilot’ mechanism, initiating a preliminary investigation after complaints were lodged by the International Air Transport Association (IATA), the European Regional Airlines Association (ERA), and Airlines for Europe (A4E).
The Commission previously stated its general support for consumer protection measures within the Internal Market, “provided they comply with the freedom of price-setting and price transparency.”
However, it was not until this September that Commissioner for Sustainable Transport and Tourism Apostolos Tzitzikostas indicated having “sufficient information” to proceed with a decision regarding the case, although no timeline was provided.
This determination followed a meeting between the commissioner and Ryanair’s CEO Michael O’Leary, as well as a phone call with Minister of Consumer Affairs Pablo Bustinduy, who had publicly expressed frustration over the commissioner’s lack of response to his requests for a meeting. (October 8)
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