'Airlines' offers cheap tickets to be investigated

Practice of flights being displayed at low prices before further charges are added is to be looked at by European commission
The European commission has launched an inquiry into airlines' controversial "add-on" charges that allow them to offer low prices bearing little resemblance to what ticket buyers end up having to pay.

Siim Kallas, a European commission vice-president, who is also the organisation's transport commissioner, said he was concerned about the growing practice of airlines offering attractive, affordable, "headline prices" for flights that are then subject to baggage charges, credit and debit card fees, and airport check-in fees.

The practice, already criticised by UK consumer groups, has been under the spotlight for being used, as a matter of course, by budget airlines such as Ryanair. But it is also a feature of scheduled carriers as well as train firms and rail websites.

In a letter to Kallas, he said the "marked trend" of adding charges for basic services was "giving rise to serious concern". He added: "Passengers have a right to receive basic services for … their air tickets. It is necessary to ensure price transparency."

He said the situation was similar to what happened with package holiday contracts; in that case, basic rules governing pricing of such holidays were set out in an EU directive.

Simpson said the list of additional charges was growing. Ryanair had introduced an "EU 261 levy", which charges customers a fee to cover any compensation that might have to be paid under EU passenger rights legislation. "It doesn't seem fair or appropriate to ask passengers to help cover the business risks of Ryanair."

The situation has been compounded by the ease of buying tickets online, where people may decline to cancel a transaction at a late stage as the extra charges kick in. Consumers have to agree with carriers' terms and conditions to proceed with the transaction.

Monique Goyens, director general of the European Consumers' Organisation, said: "It's high time the commission looks into this issue. More and more airlines charge their clients unnecessary high costs for paying by credit or debit card, inflating the price tag of flights advertised as low cost. Accepting card payments to buy a ticket is not a service delivered by a company. Passengers should not be charged for exaggerated and unjustifiable card fees.