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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 on Wednesday that the Brussels agency has started infringement proceedings. They claim that Spain’s Air Navigation Law which restricts the freedom of airlines to set their prices is in contravention with EU directives.
The sanctions at the heart of the dispute were handed down nearly a year ago to Ryanair, Vueling Easyjet, Norwegian, and Volotea.
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The Spanish government accused carriers of abusing their passengers by charging extra for cabin bags and for the reservation of adjacent seats for dependents to sit next to their caregivers.
Brussels, however, says that the law underlying the fine is incompatible EU competition rules which gives airlines the right of setting their own commercial prices.
The Commission has now sent Madrid a formal ‘reasoned letter’ – the first stage of a three-step infringement procedure.
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The EU gives Spanish authorities a two-month period to respond to EU officials’ concerns and to give an explanation.
If Spain continues to refuse to budge on its position, Brussels could move to the second phase by issuing a reasoned formal opinion with a new deadline for compliance.
If the impasse continues, the Commission may escalate the case before the Court of Justice of the European Union at Luxembourg where Spain might face a binding judgement and potential penalties.
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The case reveals the long-running dispute between Spain and low cost carriers, notably Ryanair, about the limits of passenger rights, airport fees and other issues.
The Spanish consumer groups have welcomed the government’s move to curb what they consider abusive practices. However, the airlines maintain that they are free to set their own pricing structure to keep basic fares affordable.
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.
Travel News by The Olive Press.
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