Spain fines low-cost airlines $187M over 'abusive practices'

OVIEDO, Spain

The Spanish government has fined low-cost airlines €179 million ($187 million) over what it describes as “abusive practices,” the Consumer Affairs Ministry announced Friday.

The airlines were sanctioned for charging for cabin luggage, seat selection when traveling alongside children or other dependent people, not allowing cash payments, misleading pricing, and “disproportionate” fees to print boarding passes.

Irish airline Ryanair was levied the largest chunk of the fine – €108 million – but Vueling, EasyJet, Norwegian, and Volotea were also sanctioned.

The Spanish government hopes the fines will persuade the airlines to end the excess charges, but the top representative of Spain’s airline industry said carriers will not automatically change their policies.

At a press conference Friday morning, Javier Gandara, the head of Spain’s Association of Airlines (ALA), called the fines “nonsense” and “illegal.”

“Spain would be an exception, the only country where a different trade policy would have to be applied, which would be a clear competitive disadvantage for our country,” he argued, saying it takes away consumer choice and would cause airlines to fly elsewhere.

According to the Consumer Affairs Ministry, the fines were determined based on the airlines' profits from the charges.

Under Spanish law, penalties for abusive practices classified as “very serious,” such as these, can reach up to six to eight times the illicit benefit obtained.

After rejecting the airlines’ appeals to the government against the fines first announced in May, the decision confirmed and even increased the penalties.

The airlines now have two months to file legal challenges.