Calling the move an “appalling decision,” IATA has condemned a decision by the Spanish government to remove cabin baggage fees for passengers in Spain and fine airlines EUR 179 million. The air transport association charges that the move “undermines freedom of pricing which is fundamental to consumer choice and competition, a principle that has been long upheld by the European Court of Justice.”

“Far from protecting the consumer interest, this is a slap in the face of travellers who want choice,” IATA’s Director General Willie Walsh blasts. “What’s next? Forcing all hotel guests to pay for breakfast? Or charging everyone to pay for the coat-check when they buy a concert ticket?”

Walsh says the forgone fees will simply be priced into all tickets.

“EU Law protects pricing freedom for good reason. And airlines offer a range of service models from all-inclusive to basic transport. This move by the Spanish government is unlawful and must be stopped,” he says.

“Consumers want choice and value for money. This law would remove both,” he continued, citing a recent independent polling commissioned by IATA from Savanta of recent air travellers residing in Spain that indicated that 97% were satisfied with their last trip and confirmed the following preferences:

• 65% prefer to pay the lowest price possible for their air ticket and pay extra for any additional services that are needed
• 66% agreed that in general there is sufficient transparency on fees charged by airlines for various travel options
• 78% said that air travel is good value for money, and
• 74% said they feel well-informed about the products/services they are buying from airlines.

The findings, Walsh adds, align with the latest Eurobarometer survey by the European Commission in which 89% of travellers Europe-wide said that they were well informed about allowances for their luggage.

Moreover, he says that ancillary revenue is key for the low-cost carrier (LCC) business model, which he maintains has reduced prices and widened access to air travel to lower-income groups.

“Carrying cabin bags has a cost associated to it. This is primarily in lengthened boarding times, as a result of the time it takes for passengers to accommodate their baggage,” he says. “Aircraft utilization is a key parameter of airline profitability, particularly on short-haul operations. Adding an extra 10-15 minutes on the ground to board each flight quickly reduces the number of flights and aircraft can do each day. Everyone paying more for less choice is the worst possible outcome that a regulation could deliver.”

Walsh notes that in 2010 Spain attempted to impose similar fines and restrictions on airlines.

However, he says, “They failed once, and they will fail again!”

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