EU calls on airlines to halt misleading fares

BRUSSELS, July 18 (Reuters) - The European Union's top regulator took on misleading air fares on Tuesday, telling airlines to include taxes and charges in ticket prices so consumers know up front how much a journey will cost.

The proposal, adopted by the executive European Commission, is its latest move to make the EU more consumer-friendly. Last week the body launched a plan to slash the cost of using mobile phones abroad.

The air fare rules are seen especially aimed at low-cost carriers such as Ryanair , whose low advertised fares often turn out much higher once taxes and other charges are included.

"Citizens must enjoy the benefits of the single market and have the possibility for more choice and quality. They must be able to easily compare fares between airlines," Transport Commissioner Jacques Barrot said in a statement. The proposal would also give the Commission authority to revoke or suspend airlines' licenses if they do not follow EU rules and calls for "better financial information" to reduce the number of bankruptcies among new airlines.

Europe airlines could be forced to close Web sites
12 November 2007

BRUSSELS, (Reuters) - Over half of Europe's airlines including Ryanair could be forced to close their Web sites next year if they fail to remedy problems shown by the EU consumer affairs watchdog in a probe carried out in September.

The results of the investigation to be published on Wednesday and obtained by Reuters says "over 50 percent of all Web sites showed irregularities, in particular relating to price indications, contract terms and clarity of proposed conditions."

"Companies will be contacted by authorities and asked to provide clarification or change their practices in four months. Those who fail to do so could face legal action leading to fines or closure of their Web sites," the report says.

The results do not identify any airlines in particular, but the European Union's Executive Commission intends to "publish a list of companies concerned" in four months' time.

Last month, Spain's consumer rights watchdog said it had found misleading information in seven of 12 airline ticket Web sites including Ryanair -- Europe's biggest low-cost airline.

The Spanish authorities also found faults with Spanish carriers Vueling , Iberia and Spainair.

"Ryanair and those other companies in the Spanish investigation are on our radar," a European Commission source told Reuters.

The Brussels investigation, known as a "consumer sweep," focused on unfair pricing, hidden charges and terms and conditions not translated properly. The sweep was carried out with the help of 15 EU national authorities and Norway.

Those airlines at fault were found guilty of practices including the following:

- The price of the ticket is first indicated without airport taxes and additional fees

- Offers promising tickets for free or at a low price, but such tickets are unavailable when the consumer wants to buy them

- Tick boxes for insurance or additional services are ticked "yes" by default, trapping the consumer into buying unwanted items or being included on spam mailing lists

- General terms of sales are not provided in the language version used by the consumer during the booking procedure - or not available at all in any language

- No information is given about the rights and procedures of cancellation, transferability and ability to change dates.

Belgium had the worst number of incidents, with 46 of 48 Web sites investigated found to be at fault. Of the 20 Web sites probed in Austria, none was found to break EU consumer rules.

Ryanair Responds To Newspaper Reports
13 November 2007
Edited Press Release

LONDON (Dow Jones)--Ryanair Tuesday welcomed the latest European Commission leaks about airline pricing. It has been reported in Tuesday's newspapers that the European Consumer Affairs Commissioner, Maglena Kuneva has carried out an investigation into airline price advertising.

Ryanair is confident that any such investigation will highlight:

1) That no other airline matches Ryanair's low fares availability with over 50% of all seats (25 m this year) sold at the lowest two fares.

2) Ryanair's average fare of EUR44 is the lowest in Europe, with Easyjet's (EUR66) 50% higher than Ryanair's. Ryanair's average fare is half the price of Aer Lingus' (EUR91) and less than a fifth of Air France (EUR220), Lufthansa (EUR237) and British Airways' (EUR268) average fares. Only Ryanair offers E.U. consumers a lowest fare guarantee.

3) Ryanair is also the only airline to guarantee no fuel surcharges ever, while British Airways, Air France and Lufthansa continue to raise their unfair fuel surcharges, despite having hedged their fuel at $65 to $75 per barrel, some $25 below market prices.

All prices advertised on Ryanair.com's home page and all of Ryanair's media advertising is fully tax inclusive.

Over 95% of Ryanair's passengers currently decline optional insurance on Ryanair.com, which conclusively demonstrates that it is both easy to use, easy to decline and entirely optional.

FACTBOX-EU executive warns airlines over Web sites

Nov 14 (Reuters) - Over 200 European Web sites selling airline tickets, including many run by leading airlines, were warned by the European Commission on Wednesday that they face being shut down unless they stop misleading consumers.

Below are some facts about the investigation, called a "sweep", into the Web sites:

When was the probe carried out and by whom?

From Sept. 24 to 28, authorities from 15 EU states and Norway investigated 446 Web sites.

What about the other 12 EU states?

According to the Commission, some countries including Britain, Germany, Ireland and Poland had already carried out their own "sweeps" which they submitted to Brussels before September.

Other countries have told the Commission they will submit their data before the end of the year. A compilation of results from all 27 member states will be published in January.

What are the offences?

- The price of a ticket is first indicated without airport taxes and additional fees

- Tickets are promised for free or at a low price, but are unavailable when the consumer wants to buy them

- Tick boxes for insurance or additional services are marked "yes" by default, trapping the consumer into buying unwanted items or being included on spam mailing lists

- General terms of sale are not provided in the language version used by the consumer during booking -- or not available at all in any language

- No information is given about the rights and procedures of cancellation, transferability and ability to change dates.

Who were the offenders?

Belgium had the worst number of incidents, with 46 of 48 Web sites investigated found to be at fault. Of the 20 Web sites probed in Austria, none was found to break EU consumer rules. Greece and Cyprus also found no offenders during their probes.


Country Number of searches Number which break rules
Sweden 32 16
Bulgaria 54 18
Denmark 62 25
Greece 13 0
Finland 30 20
Cyprus 8 0
Lithuania 40 23
Belgium 48 46
Portugal 16 11
Spain 11 7
Italy 11 9
Austria 20 0
Norway 31 22
France 31 13
Estonia 26 14
Malta 14 2
Total 447 226

What are the punishments?

Possible measures include ordering a company to change or cease a prevailing practice, imposing fines, or closing Web sites. National enforcement bodies are obliged to take measures -- repeatedly if needed -- until the infringement has ceased.

If a national authority fails to act, the European Commission could drag the country to the European Court of Justice, Europe's highest court. (Compiled by Darren Ennis, Editing by Erica Billingham)

EU to simplify flight reservations, sees price cuts

BRUSSELS, Nov 15 (Reuters) - The European Commission plans to simplify computerised reservation systems (CRSs) for airline tickets, saying it would boost competition and lower prices, despite doubts among some industry groups.

Under the EU executive's proposal on Thursday for a revised code of conduct in the sector, CRSs and airlines will be free to negotiate the booking fees charged by the reservation systems and the information content provided by the airlines.

The plan, which will now be scrutinised by the European Parliament and EU transport ministers, would thus introduce pricing freedom, the Commission said.

"More competition in this market means lower distribution costs and airlines offering more travel options via the CRSs," EU Transport Commissioner Jacques Barrot said in a statement.

"Consumers who use the services of a travel agent for their airline bookings will enjoy an increased offer while still being protected against any abuse or discrimination," he added.

He said the new rules, which mark the first revision in 20 years, would ensure all booking channels competed on a level playing field.

CRSs provide subscribers with up-to-date information about flight availabilities and fares. They allow travel agents to find flights, compare prices and make immediate confirmed reservations on behalf of their customers. But some industry groups denounced the scheme, saying it would strengthen the grip over the market by Europe's largest reservation system Amadeus, in which German air carrier Lufthansa, Franco-Dutch Air France-KLM and Spain's Iberia hold a 46 percent stake.

"The Commission's proposal gives Amadeus and its owners a license to engage in abuse," said Brandon Mitchener, director of the Coalition for Fair Access to Reservations in Europe.

He said Amadeus would be free to provide Lufthansa, Air France-KLM and Iberia superior fare loading processes and privileged access to technology for the display and sale of their transportation at the expense of consumer choice.

This is because the new rules do not define clearly the obligations of a "parent carrier" in the reservations systems, he said.

Another group, Business Travel Coalition, said it was surprised the Commission was making a proposal it branded flawed while fighting to improve the quality of information on Web sites selling airline tickets. (Reporting by Marcin Grajewski, editing by Dale Hudson)

EU agrees rules to clear up airline ticket prices

BRUSSELS, Nov 30, 2007 (AFP) - The European Union agreed Friday new measures to make airline ticket costs more transparent by obliging companies to included all taxes and charges in the headline price first shown to consumers.

The measures, agreed Friday by the EU's 27 member states in concert with the European Parliament, are based on the principle that the price the traveller sees should be the real cost of the ticket.

They are aimed at better informing potential passengers and allowing them to compare prices, as in future all the taxes, fees, surcharges and other fees will be figured in.

"From now on, passengers will enjoy the benefits of the single market and will receive complete information on the exact ticket prices, without any discrimination," said EU Transport Commissioner Jacques Barrot.

Europe's aviation sector has expanded markedly over the last decade, bringing down prices as more and more people travel by air.

The European Commission says the number of routes has increased by more than 60 percent over that time.

Before the new measures can take effect, they must be rubber-stamped by the European Parliament, which is considered to be a formality.

Budget airlines find new ways to bump up prices

LONDON, Jan 8 (Reuters) - Travellers flying with budget airlines are still paying more than the advertised price of the ticket, according to a report by consumer group Which?

Despite legal measures forcing airlines to include compulsory taxes and charges in their headline prices, budget airlines are devising new ways in which to levy extra charges -- sometimes up to 28 pounds more than the advertised cost of a return flight.

Which? found Ryanair to be the worst offender, charging passengers up to 20 pounds at the airport to check a bag into the hold and four pounds to use the check-in desk.

Monarch Airlines and bmibaby were also found to charge up to 20 pounds for checking a bag into the hold, while Flybe charges up to 18 pounds and Easyjet up to 10 pounds.

Easyjet charges 15 pounds for its "speedy boarding" service, while Ryanair levies a four pound fee.

These charges comes on top of credit card fees airlines charge at the time of booking, ranging from 3.50 to 4.90 pounds.

Lorna Cowan, editor of Holiday Which? magazine, said: "We're disappointed to see the major budget airlines are introducing charges for services that were once included in the full cost of the ticket.

"(We) would like to see airlines put a halt to these extra charges -- who knows what they'll be charging us for next."

Consumers ripped off by misleading online airline tickets: EU

BRUSSELS, May 8, 2008 (AFP) - Consumers are getting ripped off by misleading information for airline tickets sold online, the EU's top consumer protection official said Thursday, promising a crackdown if the industry fails to clean up its act.

An EU probe found that one in three ticket booking sites in 13 participating countries have breached consumer law and that regulators had to pursue them to enforce the rules.

"It is unacceptable that one in three consumers going to book a plane ticket online is being ripped off or misled and confused," EU Consumer Commissioner Meglena Kuneva said.

"We will need to see credible evidence of improvement to clean up these sales and marketing practices within the airline sector by May 1 next year or we will be left with no choice but to intervene," she added.

With the EU investigation due be wrapped up by May 2009, the industry would remain under tough scrutiny for signs of improvement over the next year before it was decided whether further action was needed.

Kuneva said that most countries participating in the investigation had kept the names of offending airlines and tour operators to themselves and that only Sweden and non-EU member Norway had passed that information on.

Of the names given in statements by those two countries, low-cost carrier Ryanair was the only airline on both lists while Norwegian authorities said Austrian Airlines and Finland's Blue 1 had broken consumer rules.

Other offenders were third-parties such as tour operators selling tickets online.

Giving an insight into the problems facing consumers, Norwegian authorities found that Ryanair included the right to priority boarding as a pre-chosen option and charged a fee of 50 Norwegian kroner (6.4 euros, 9.8 dollars) for it.

Similarly, Blue 1 included insurance in case of cancellation as a pre-chosen option for customers booking tickets online.

Norwegian authorities found that Austrian Airlines had a booking fee of 100 kroner per ticket that was not included in the advertised prices on the front page of the airline's website.

Kuneva said that misleading prices were the most common problem on ticket booking sites, followed by unfair contract terms.

Another big problem was that advertised offers were not available.

She said that the booking problems facing consumers online were rampant across the industry, with small and big airlines alike guilty.

Advising how to avoid getting ripped off, Kuneva said consumers should "compare final offers, be vigilant, especially about pre-checked boxes and complain."

She stressed the importance of complaining as being essential for authorities to gather information and build cases against companies.

While welcoming the commission's interest in online ticket booking, the BEUC European consumers association said the offending companies should be named and shamed.

"The commission has done part of the work by underlining the continued presence of unfair practices in the sector of online sales of airline tickets," BEUC director general Monique Goyens said.

"We will be asking our members to go further and to divulge, if necessary, the names of the companies in the wrong," she added.

EU Parliament moves against misleading airline ads
9 July 2008

STRASBOURG, France (AP) - The European Parliament approved a bill Wednesday to prevent airlines posting advertisements for cheap flights that hide the true price by excluding additional charges such as taxes and booking fees.

The bill passed without a vote because none of the 785 members of the EU assembly raised any objections.

A European Union report in May claimed a third of people who shop for flights online are being cheated by misleading ads and price schemes. In said airlines and other travel companies often add airport taxes, handling fees, baggage and seating charges, and a variety of other costs, on top of the prices that first appear on Web sites.

Under the rules approved Wednesday, airlines will have to clearly show the total price customers will have to pay at the start of the booking process.

"The passenger has a right to know the actual price of the ticket, including taxes and extra charges," said Arunas Degutis, the Lithuanian liberal member who drafted the bill. "It is misleading to advertise a ticket at 1 or 2 euros, when the actual cost is actually much higher."

EU governments have already approved the rules which are expected to come into force by early next year.

About 700 million travelers fly on EU airlines each year and the sector draws more consumer complaints than any other, the EU says.

The European Low Fares Airline Association said it welcomed the EU measure, claiming its members had more open pricing than traditional flag carriers.

"Low fares airlines have the most transparent pricing policies," said the group which includes easyjet, Ryanair and Sky Europe.

Such no-frills airlines have dramatically increased their share of the short-haul flight market in Europe in recent years, leading the way in online reservations.

The European Low Fares Airline Association says budget airlines currently account for over 35 percent of scheduled air traffic within Europe, with its members expected to carry over 150 million passengers in 2008.

EU bans airlines from hiding taxes and charges

BRUSSELS, Oct 30 (Reuters) - European Union airlines will this week be banned from hiding taxes and extra charges when advertising their flights, the EU's executive said on Thursday.

The European Commission also said its new regulations on air services, which come into force on Saturday, gives European nations extra powers to prevent airline bankruptcies, which often leave passengers stranded.

"Airlines will be required to include all taxes and charges in the final price of the ticket ... and this from the moment of publicising the prices," a Commission spokesman told a daily briefing.

"That means no hidden charges, no hidden fees or taxes, full transparency and the possibility of informed choices," he added.

The rules also prevent carriers from charging different prices for the same flight if booked from different national websites.

And to reduce the risk of airline start-ups going bankrupt they will have to provide more information about their financial resources to national authorities.

"If an air carrier can no longer meet its actual and potential obligations for a 12-month period, the authority shall suspend or revoke the operating licence," said a statement.

The new rules come into force as airlines struggle with a cocktail of soaring fuel costs, slowing consumer demand and the impact of the credit crisis on banking liquidity.

Over 30 airlines have failed worldwide so far this year and a similar number are expected to collapse in coming months, as travel slows in the northern hemisphere winter.

The EU's new rules include emergency procedures for the replacement of airlines that fail while serving a remote region or island that depends on the air link for economic survival.

I wish they would do that here in Canada - its awful to find out the real price of a $199 fare (usually ends up being around $850)

I wish they would do that here in Canada - its awful to find out the real price of a $199 fare (usually ends up being around $850)

Yes, I remember trying to book a redemption ticket with my Aeroplan points to a regional destination (15k points) and was shocked to find taxes costed over CAD 100 already for the 'free' ticket.

There used to be a lot of rock-bottom transatlantic specials with advertised fares of CAD 299 / 399 roundtrip. With taxes, the final figure would double ... quite misleading indeed.

That is all good news. Hate these hidden taxes and extra costs.

EU consumer czar to take misleading airlines to court

BRUSSELS, Nov 24 (Reuters) - The European Union's consumer chief gave some of Europe's top airlines a final warning on Tuesday to stop misleading consumers or face possible fines and having their websites shut down.

EU Consumer Commissioner Meglena Kuneva will give airlines who mislead or rip off customers until the end of the year "to clean up their act" or she will begin legal proceedings in January, a European Commission official said.

"She has run out of patience and will tell the airlines that this is the last chance saloon for them," the official said.

A probe by the EU's executive in May found that one in three European consumers were being misled or ripped off by websites selling airline tickets including many run by leading airlines across the 27-member bloc.

But Kuneva is angry that despite repeated warnings since then, many airlines still breach EU rules with unfair pricing, hidden charges, and terms and conditions not translated properly.

"Airlines are continuing to advertise free flights that are not free at all and are forcing people to take unwanted insurance and baggage charges because they don't realise they need to unclick the option on the website," the official said.

Online booking is critical for the EU airline travel industry, which Commission figures show caters to over 700 million passengers per year.

Kuneva will issue her warning at a meeting on Tuesday with the Association of European Airlines, representing major airlines such as British Airways and Scandinavian Airlines.

She will also on Tuesday outline her intentions when she meets members of the European Low Fares Airline Association which includes Ryanair, easyJet and Clickair.

"She will firstly order member states to start court action against offenders, but if necessary she will take out injunctions against the airlines herself which can lead to fines or the closure of their websites," the official said.

The official added that Brussels will carry out "mystery customer" surveys over the coming weeks to determine which airlines are still breaking the law.

I've still seen many fares, especially on Ryanair, being listed without taxes.

Ryanair DO offer flights from 1p. no tax and no added extras, if you chose not to add luggage and pre-boarding etc so why shouldn't they advertise such fares?

This year, I have flown from Glasgow to Dublin twice, London and Paris with Ryanair. Combining the total cost of all four trips comes to £0.08 per person.

Ryanair = :cheers:

Yes ... all but one of the Ryanair flights I flew in the past year advertised the fare, then added taxes. The exception was 1 fare that had no taxes but was not 1p.

Obviously if there are no taxes being added then they can advertise that, but last week they had a flight for 1 SEK and when I clicked on it suddenly it went up up up with taxes.

Obviously if there are no taxes being added then they can advertise that, but last week they had a flight for 1 SEK and when I clicked on it suddenly it went up up up with taxes.

They advertise fares FROM £0.01 etc so if your flight happens to have tax, well bad luck but there are flights avalable with NO taxes.

People just love to hate Ryanair.

But then, even after taxes the Ryanair fares are still very attractive. Imagine 20 GBP for a one-way from London to Germany for a weekend getaway!

I think people just need to be more careful when they research and look for the grand totals, although harmonization of rules across the continent should make that task a lot easier.