Irish low-cost airline Ryanair has warned that Spanish passengers may face higher fares if the Spanish government does not withdraw a recently imposed fine. The airline’s announcement escalates tensions with the government, while the European Commission investigates the matter.
The conflict intensified after Ryanair’s decision in November to reduce its operations in Spain, withdrawing flights from seven airports and cutting 800,000 seats. This move led to a public dispute with Spain’s Minister of Transport, Óscar Puente.
Now, Ryanair CEO Michael O’Leary has targeted Minister of Social Affairs, Consumer Affairs and Agenda 2030, Pablo Bustinduy, calling him a “crazy communist minister” over what he described as an “absurd and illegal fine.”
The 179 million euro fine
In November, the Spanish government fined Ryanair, Vueling, EasyJet, Norwegian, and Volotea a combined €179 million for charging extra fees for hand luggage and seat reservations. Ryanair’s share of the fine amounts to €107 million.
The airline considers the fine “unjustified and illegal,” warning that if it is not rescinded, Spanish passengers will bear the cost through increased fares.
Ryanair’s defence
O’Leary argued that European law grants airlines the freedom to set their prices and policies without interference. He stressed that EU law overrides the sanctions imposed by Minister Bustinduy, dismissing the fine as “ridiculous.”
Potential impact on Spanish tourism
Ryanair’s CEO defended the airline’s pricing strategies, stating that they have revolutionised Spanish tourism by offering affordable travel options. He emphasised that keeping fares low depends on policies that encourage passengers to travel light and pay for additional preferences like seat selection.
Spanish government’s response
Minister Bustinduy responded to O’Leary’s comments, stating, “This ridiculous minister will continue to defend consumers.” He highlighted that the fine is based on rulings from the Court of Justice of the European Union and European Parliament legislation. Bustinduy encouraged Ryanair to challenge the fine in court, as is their legal right.
Investigation from Brussels
Meanwhile, the European Commission has launched a preliminary investigation into Spain’s fine under the “EU Pilot” mechanism. This process allows for informal discussions before potential legal action. The Spanish government has ten weeks to respond to Brussels’ request for information. Once the response is received, the Commission will have another ten weeks to assess the case and decide whether to initiate infringement proceedings.
Uncertain future for passengers
The ongoing dispute raises concerns about potential fare increases for Spanish passengers. While Ryanair continues to defend its business model, the Spanish government remains firm in its commitment to protecting consumer rights. The outcome of the investigation from Brussels will be crucial in determining the future of low-cost travel in Spain.