easyJet CEO slams Spanish Consumer Ministry for imposing ‘illegal fines’ for flight add-ons

easyJet CEO Johan Lundgren has slammed Spanish-imposed fines as being illegal and go “completely against European law.”

Last week, the airline was fined €29 million by the Spanish Consumer Rights Ministry for charging its customers for hand luggage and seat reservation fees.

The Ministry also fined Vueling, Norwegian, Volotea and Ryanair, with the latter being charged the highest fine at €108 million.

Reacting to the fines, during an interview on BBC Radio 4’s Today programme, he remarked that the fine is “anti-consumer,” arguing that such practices allow passengers to have more options on the table, should they choose so.

“We’re offering people the choice to select and get what they pay for. One-third of our customers do not choose any ancillaries whatsoever,” he continued.

Ultimately, he argued, the fines would lead to higher underlying fares, making it more expensive for customers to travel.

In comments to CNBC’s ‘Squawk Box Europe, Mr Lundgren stated that he completely disagrees with the fines. “We think it goes completely against European law and European law’s going to trump that,” he added.

Ryanair has instructed its lawyers to immediately appeal the fine with CEO Michael O’Leary stating that it is “illegal and baseless.”

“[The] 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. These illegal Spanish fines, which are based on an ancient 1960s law that 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.

Where did this stem from?

For the year ending 30th September, easyJet reported an operating profit of £597 million, marking a 25 per cent increase compared to a year earlier. Simultaneously, ancillary revenue – which includes additional luggage allowance, seat selection, priority boarding and in-flight meals – increased by four per cent when compared to the previous year.

The CEO attributed revenue increase to “price optimisation” and said that revenue was driven by demand.

The Consumer Ministry remarked that the five airlines should discontinue their practice of requiring additional payment for cabin luggage and reserving a seat near a dependent traveller.

It criticised the airlines for “disproportionate and abusive” charges to print tickets, allegedly omitting or failing to clarify pricing information on their websites and failing to allow cash payments at Spanish airports.

On the other hand, the Spanish Association of Airlines (ALA) highlighted that it will appeal the fine for cabin luggage fees in court as it also described them as “manifestly illegal” and against European norms.