By Brian Johnson - 17th July 2006
The European commission has announced plans to stop airlines from advertising fares that fail to show extra charges and supplements.
The new proposals, the latest in an ongoing package of aviation market reforms, will force carriers to advertise air fares that include all extra charges and tariffs.
The move follows complaints that passengers were being mislead about the real cost of flights as hidden charges such as fuel supplements, booking fees and taxes, were only revealed once a booking had begun.
Low-budget carriers such as Ryanair have been criticised for advertising fares for as little a 99 cents that omit any hidden charges.
Brussels also argues that the practice restricts customers from comparing costs between different airlines.
“Citizens must enjoy the benefits of the single market and have the possibility for more choice and quality,” said commission transport chief Jacques Barrot in a statement on Tuesday.
“They must be able to easily compare fares between airlines.”
Barrot called the EU’s air transport liberalisation process a “European success story”.
“We want to consolidate this success by removing all restrictions to the free provision of air services and ensuring fair competition between airlines.”
Ryanair said in a short statement that it welcomed the proposals, stating that “all passengers who book and fly with Ryanair already receive a full breakdown of fares, taxes and charges before they are allowed to make a booking”.
But UK centre right MEP Syed Kamall questioned the need for a new regulation.
“The European commission is right to be tackling this issue but it should put pressure on the industry to resolve it itself before it considers a cumbersome regulation,” said Kamall.
“If one big airline or travel operator could be encouraged to use more open pricing, I believe consumers would reward them with their custom. We should try to let the market sort this out before we go in all guns blazing with yet more red tape.”
The commission will also outlaw the practice of charging varying prices for the same flights for customers who live in different EU countries.
Other proposals unveiled on Tuesday include new rules on leasing aircraft, both within and outside the EU, and increased commission powers to allow Brussels to revoke airline operating licences if companies are found to be financially suspect.
Have your say...
Please enter your comments below.