Airlines will be banned from attracting customers with low flight-costs that
hide the true price of the journey, under a regulation agreed in the
European Parliament today.
The full air fare will have to be the first price quoted in adverts and on
websites in a measure triggered by complaints from consumers about hidden
charges.
Budget airlines insisted that they already displayed full prices at the first
opportunity and Ryanair dismissed the new rules as "rubbish".
But MEPs said that the regulations were needed to make sure that passengers
were not lured into a lengthy online booking process based on misleading
offers.
A European Union (EU) survey found that one third of online customers felt
misled by price offers only to find compulsory extras on their final bill
when they come to pay.
It said that airlines and travel companies often added airport taxes, handling
fees, baggage and seating charges, as well as a variety of other costs, on
top of the prices that first appeared on websites.
"Apart from flight delays, the most complaints that I receive against
airlines concern the way that they lure people with what appear to be low
fares and conveniently tell them the true cost only at the very end of the
process," said Brian Simpson, a Labour MEP who campaigned for the
regulation.
"Low fare airlines have perfected this art over recent years. Now, not
only will the customers see the true price, but also the security taxes
levied by national governments will have to be highlighted separately.
"I hope this will end what has been over recent years an exercise in
deceit by some airlines which try to con the travelling public into
believing they are buying a very cheap ticket when the opposite is true."
But Mr Simpson added: "I have had 20 years of working with airlines and I
am sure that the first thing they will be trying to do is to find loopholes."
The regulation, which will come into force at the end of the year, will not
stop airlines advertising fares "from" a certain low price, even
if very few seats are available at that level.
The Office of Fair Trading took action against 13 airlines last summer to
force them to include the full costs in their advertised flight prices.
A spokesman for Ryanair said: "We believe this is a rubbish measure
because we are already applying this.
"Whenever we advertise in the media or on our website we always include
all mandatory charges and fees. If you take sports equipment or choose
priority boarding, that is not mandatory so you pay for it if you want it."
He added: "There are more important things for the European Parliament to
be looking at, such as the practice of surcharging for fuel by some
airlines. They tell their investors that they have hedged against laast
year's prices, so why are they surcharging their passengers?
"This [regulation on transparent pricing] looks good for the consumer but
we do not need it."
The Advertising Standards Authority has ruled in several cases against
misleading flight costs.
An Australian travel firm was found to be advertising flights to Brisbane at
£499 which really cost £601 with insurance, hotel stopover and fuel
surcharge.
BmiBaby was warned in 2003 that "by quoting the prices without taxes and
charges, the advertisers had exaggerated the benefit to consumers from their
quoted 'from' prices."
I have just returned from Italy on Ryanair. They are charging excess baggage fees of 12 pounds/15 euros for each kilo over 15 kilos checked baggage.Does any other airline charge a fee approaching that amount for excess baggage?
That seems to be the best (i.e. worst) hidden charge of all
Edward Black, London, UK
Ryanair should certainly take note of this! Last time I tried to book a flight with them I started with a 1 euro fare and when I finished the process it was 124 euros... hardly budget. With a15 kg limit I would be charged another 24 at 8/kg. I flew someone else as they came out less far expensive.
Lily, London,
The price should include all taxes, charges AND handling fees, which many airlines now seem to have added on top of the original 'taxes fees and charges'. Ryanair have sneakily increased their 'handling fee' for using a debit card like Maestro from £1.20 to a whopping £4 per person, per sector!
Bergman Coffey, Belfast, UK
Flying from Oz, there are many charges which vary for particular flights and destinations, so there can be no single all-inclusive fare advertised. Probably also applies to long-distance flights from Europe. I suggest a range be posted covering (airline fare + minimum charges) to (af+max c).
Faustino, Brisbane, Australia
Isn't this all about ten years too late as high oil prices will drive the budget airlines out of business anyway?
Paul, Coventry,
How can Ryanair claim to do it already when buried in their online booking process is a hefty fee for taking a case?
Every price quoted should include the ticket, all taxes and a case.
Fred, Moray, Scotland
Ryanair charges a fee for the use of virtually any method of payment, which varies based on the number of passengers. Their costs would only be incurred per transaction or as a percentage of total price. This fee (per passenger) is therefore an additional hidden charge for each ticket.
Bruce McGinn, London, UK