Ryanair Holdings PLC on Friday said it would be appealing Spanish fines imposed on the firm, citing breaches of EU law.
On Friday, Spain’s Consumer Rights Ministry said it had fined five budget airlines, namely Ryanair, easyJet PLC, International Consolidated Airlines Group SA’s Vueling, Norwegian Air Shuttle ASA and Volotea a combined of €179 million for ‘abusive practices’ such as charging for hand luggage.
The Dublin-based low cost airline revealed it would be immediately appealing the fines, calling them ‘illegal’ and ‘baseless’, adding that its baggage policies have received approval in multiple Spanish and EU court hearings.
Ryanair was handed the largest chunk of the fine at €107.8 million, with fee calculations tied to the profit gained through these practices.
Ryanair first introduced the charge for hand luggage in November 2018 and was the first of the group to do so.
Its shares were down 0.3% at €18.21 on Friday morning in Dublin.
Vueling was fined €39.3 million and easyJet was ordered to pay €29.1 million.
Norwegian Air and Volotea’s fines came in at the lower end at €1.6 million and €1.2 million respectively.
Ryanair Chief Executive Michael O’Leary said: ‘These illegal and baseless fines, have been invented by Spain’s Consumer Affairs Ministry for political reasons, are clearly in breach of EU law.
‘Ryanair has for many years used bag fees and airport check-in fees to change passenger behaviour and we pass on these cost savings in the form of lower fares to consumers. Today’s illegal fines in Spain are in breach of EU law (Reg 1008/2008) and will be overturned by the EU courts, which have repeatedly defended the right of all EU airlines to set prices and policies, free from government interference.’
O’Leary continued: ‘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.
‘The success of Ryanair and other low fare airlines in Spain and across Europe in recent years is entirely due to Europe’s Open Skies regime and the freedom of airlines to set prices and policies without interference from national governments which is what today’s illegal Spanish fines are.’
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