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Ryanair and co get their wings trimmed
We’ve all been there: you see an airline advertising flights to Barcelona for no more than the cost of a first-class stamp, only to discover on closer inspection that when you factor in taxes, wheelchair charges, fuel surcharges and various other hidden costs, your 30p ticket actually costs about £300. Now the European Parliament plans to clamp down on this scourge of the casual tourist by agreeing to ban any ads that don’t include all the relevant extras in the cost of fares.
Not surprisingly, the Association of European Airlines trade body has welcomed the ruling, with a spokesman telling the BBC that: ‘airlines now in general are happy that clarity has been restored and that the consumer is being given the correct information.’ Well it was hardly going to moan about not being able to mislead its own customers, was it? And equally its membership, which is largely drawn from the traditional operators, is probably quite glad that these upstart low-cost airlines appear to be getting their comeuppance for playing a bit fast and loose with their fare figures.
Some countries already have rules in place that prevent adverts like this, but Parliament is keen to bring in legislation across the EU before the year is out. Not that the likes of Easyjet and Ryanair think there’s a problem to solve: both airlines have insisted that their advertising is completely honest and transparent – despite some regulatory rulings to the contrary, and despite Ryanair being currently involved in a battle with the Danish consumer ombudsman over claims that it misled passengers (which it furiously denies, natch).
Given that Ryanair has a habit of getting into regulatory scraps about its advertising – the Irish operator has spent almost as much time rowing with the Advertising Standards Authority as it has flying planes this year (although not always about misleading fares – one time it was about inappropriate pictures of schoolgirls) – we immediately wondered how combative CEO Michael O’Leary would react to this latest crackdown. Sure enough, we found a press release on Ryanair’s website entitled: ‘Ryanair Condemns European Parliament Decision’ – but it turns out they were condemning a different decision, not this one. It must be exhausting trying to argue with so many people at once… (Though never fear – a spokesman was soon telling the Times that today’s measure was ‘rubbish’)
Still, it looks like the days of 99p ‘flights’ to the continent may be a thing of the past. Another thing for us all to be gloomy about...
In today's bulletin:
Bank refuses to buckle
EADS hammered as US closes ranks
Rose survives revolting shareholders
Ryanair and co get their wings trimmed
'35 Under 35': Past and Present
Comments
Daniel de Carvalho - 09-Jul-08
For the purpose of clarity regarding above article, here is the full Press Release by the ELFAA (European Low Fare Airline Association)
Mixed feelings on the European Parliament’s vote on the
Revision of the Third Liberalisation Package
BRUSSELS, 9 July 2008 – The outcome of European Parliament’s vote today, on the socalled
Revision of the Third Liberalisation Package, offers ELFAA some comfort on one
hand and causes serious concern on the other.
John Hanlon, Secretary General of ELFAA said:
“Today’s vote in the European Parliament clarifies certain aspects of the original Third
Package, such as the rules applicable to Public Service Obligations (PSOs) and the
distribution of traffic between airports.
ELFAA welcomes the provisions on transparency of fares. Low Fares Airlines have the
most transparent pricing policies and want to see flag carrier airlines abandon their
abusive Saturday night rule, return pricing, and other restrictive policies, which force
passengers to pay higher fares.
However, the revised regulation imposes unnecessary complications to operators by
restricting requirements for the leasing of aircraft and inserting a reference to social
provisions, which undermine the principles of the single market for air transport services.
We acknowledge the highly successful liberalisation of the European air transport market,
which has enabled the development of Low Fares Airlines, and we would caution against
any legislative measures that would hinder the benefits of the free market.
ELFAA now urges the Council to carefully consider the Parliament’s reference to social
provisions, to ensure that the benefits of liberalisation are not undone.”
NOTES TO THE EDITOR:
ELFAA airline members include: clickair, easyJet, flybe, Jet2.com, Myair.com, Norwegian,
Ryanair, Sky Europe, Sterling, Sverige Flyg, transavia.com and Wizz Air.
ELFAA airline members will carry over 150 million passengers in 2008, using a combined
fleet of some 500 of the most technologically-advanced, environmentally-efficient aircraft.
Low fares airlines currently account for over 35% of scheduled intra-European traffic.
WEDNESDAY, 9 JULY 2008
Daniel de Carvalho - 09-Jul-08
And most especially, due to the lack of acuracy in above article, I post here the full Press Release from Ryanair:
(both Press Releases, ELFAA's and Ryanair's, where sent to the Media, but Managementtoday does not refer to them)
Ryanair Already Complies with European Parliament Decision
No Changes necessary at www.Ryanair.com
Ryanair, Europe’s largest low fares airline today (Wednesday, 9th July) welcomed the European Parliament decision to bring other airlines up to Ryanair’s standards of fare transparency. Ryanair are already compliant with the decision made today.
Ryanair Spokesperson Daniel de Carvalho said:
“Ryanair is delighted that the European Parliament has decided to bring other airlines into line with Ryanair’s high standards of fare transparency. There will be no changes to the Ryanair website following this legislation as www.ryanair.com already complies with it. Not only is Ryanair one step ahead of the European Parliament, Ryanair guarantees no fuel surcharges and the lowest fares. If the Parliament were really looking out for consumers, they would outlaw the unjustified fuel surcharges.”
Jeff Allen - 10-Jul-08
No vested interest then Daniel? Having two members of staff complaining about Ryanair and luggage charges today seems like your transparency is not as transparent as you think.
Daniel de Carvalho - 10-Jul-08
Jeff, one thing is if they complain bc they had to pay for a service they chose (and others avoid by taking carry on baggage only). The other, totally different issue, is any alleged lack of transperency. The cost for this option is avoidable. The MEP's vote refers to unavoidable charges. Those are not hidden as you can see on www.ryanair.com.
James Taylor - 15-Jul-08
Daniel - thanks very much for your comments. Just to clarify - we didn't actually get your release, but we only mentioned Ryanair specifically in the context of this story because:
a) it has previously been chastised by watchdogs for misleading fare adverts (most recently by the Danish Consumer Ombudsman Henrik Oe this month - a charge which, as we pointed out, you deny)
b) it does have rather a history of disputing regulatory pronouncements (though not in this case, as we made clear by pointing out that the objection on your website was actually to a different EU ruling)
c) it didn't seem too impressed by the ruling, judging by your comment to the Times (presumably for the reasons you outline above)
Hope that clarifies slightly..
Cheers,
James (MT Web Editor)
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