'Historic' multimillion-euro fine for low-cost airlines in Spain

The president of The Spanish Airline Association (ALA) Javier Gandara appears to assess the claim of Consumer Affairs in relation to cabin hand luggage, at the Tinkle offices.  The Spanish government has imposed fines totalling over €150 million ($163 million) on four low-cost airlines for charging an additional fee for hand luggage and other practices deemed unlawful. Matias Chiofalo/EUROPA PRESS/dpa

The Spanish government has imposed fines totalling over €150 million ($163 million) on four low-cost airlines for charging an additional fee for hand luggage and other practices deemed unlawful.

The companies affected are Ryanair, EasyJet, Vueling and Volotea, the state television channel RTVE and other media reported on Friday, citing the Ministry for Social Rights and Consumer Protection in Madrid. The left-wing government confirmed the story, but initially refused to provide details.

The Spanish consumer protection organization FACUA, whose complaint prompted the ministry to initiate sanction proceedings last year, have described the penalty as "historic."

"This is exactly what we are campaigning for - to put an end to fraud and illegal practices," FACUA Secretary General Rubén Sánchez told journalists in Seville.

"For the first time in our history, we can say that we are satisfied with the amount of a fine."

Spain's aviation industry body ALA - which says it represents more than 60 airlines operating in the EU - criticized the decision, which in practice amounts to a ban on the hand baggage fees charged by some airlines.

This will harm consumers, especially "the 50 million passengers who do not carry hand luggage in the cabin," it said in a statement.

The investigations into various controversial rules were launched after several low-cost airlines tightened their hand luggage regulations.

According to the ministry, this violated Spanish law because services that were traditionally included in the ticket price were now charged separately.

That allowed the airlines to position themselves better in search engine results due to the low prices offered without hand luggage included, the ministry said last year.

The probe also looked into surcharges for seat reservations, especially for people accompanying minors or people in need of assistance.

An appeal can be lodged against the ministry's decision.

The president of The Spanish Airline Association (ALA) Javier Gandara appears to assess the claim of Consumer Affairs in relation to cabin hand luggage, at the Tinkle offices.  The Spanish government has imposed fines totalling over €150 million ($163 million) on four low-cost airlines for charging an additional fee for hand luggage and other practices deemed unlawful. Matias Chiofalo/EUROPA PRESS/dpa