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EU Commission Challenges Spain Over Fines on Budget Airlines

The European Commission has ruled that Spain’s decision to fine several budget airlines, including Ryanair and EasyJet, for charging passengers extra fees for cabin luggage violates European Union law.

In a statement issued on Wednesday, the Commission said the Spanish authorities had breached EU regulations that guarantee airlines the “freedom to set their prices” for air services within the bloc. It has now launched a formal infringement procedure by sending a letter of notice to Madrid, giving the Spanish government two months to respond and address the issue.

The dispute stems from a decision by Spain’s Consumer Rights Ministry last year to impose fines totaling €179 million on Ryanair, EasyJet, Norwegian, Vueling—part of International Airlines Group—and Volotea. The ministry accused the carriers of unfair practices for charging passengers additional fees for carrying larger hand luggage or cabin bags that were once included in standard ticket prices.

Spain’s move was widely viewed as a direct challenge to the low-cost business model that underpins budget airlines, which attract passengers with low base fares but charge separately for add-ons such as seat selection, priority boarding, and extra baggage.

However, the European Commission concluded that the fines infringed upon EU aviation law by interfering with airlines’ commercial freedom. “The Commission is therefore sending a letter of formal notice to Spain, which now has two months to respond and address the shortcomings,” the statement said. If Spain fails to comply, the case could be referred to the European Court of Justice.

Spain’s Consumer Rights Minister, Pablo Bustinduy, criticised the Commission’s decision, accusing it of favouring corporate interests over consumers. “It is regrettable that the European Commission has decided to openly position itself as the defence attorney for this handful of large multinationals that are profiting at the expense of consumer rights,” Bustinduy said. He vowed to take the matter to the EU tribunal, asserting that Spain would “defend with all rigor” its position.

Ryanair’s chief executive, Michael O’Leary, welcomed the Commission’s stance, saying it ultimately benefits travellers. “The Commission has sided with consumers, who gain from a broader range of price options,” he told reporters in Madrid.

In June, a Spanish court temporarily suspended the fines pending further review, allowing the airlines to continue applying their existing baggage pricing policies. The injunction will remain in effect until a final legal resolution is reached.

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