Ryanair to appeal "baseless" Spanish fine on baggage fees

(Sharecast News) - Ryanair has said it would appeal a €108m fine from Spain's Ministry of Consumer Rights for alleged unnecessary customer charges, like the fees it takes for additional cabin luggage. Spain fined five low-budget carrier - including Ryanair, easyJet and IAG's Vueling - a total of €179m for so-called "abusive practices".

These practices include charging customers additional fees for carry-on luggage, reserving seats or printing out boarding passes, the Ministry said.

The fines were first announced in May but met with appeals, which the Ministry says have been dismissed.

Ryanair said it has instructed its lawyers to immediately appeal the "unlawful and baseless" fines, with chief executive Michael O'Leary claiming they have been "invented [...] for political reasons".

"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. [...] 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."

He said that the success of the budget airline business model is entirely due to the freedom to set prices and policies without interference from national governments.