Search
00
GBAF Logo
trophy
Top StoriesInterviewsBusinessFinanceBankingTechnologyInvestingTradingVideosAwardsMagazinesHeadlinesTrends

Subscribe to our newsletter

Get the latest news and updates from our team.

Global Banking and Finance Review

Global Banking & Finance Review

Company

    GBAF Logo
    • About Us
    • Profile
    • Wealth
    • Privacy & Cookie Policy
    • Terms of Use
    • Contact Us
    • Advertising
    • Submit Post
    • Latest News
    • Research Reports
    • Press Release
    • Awards▾
      • About the Awards
      • Awards TimeTable
      • Submit Nominations
      • Testimonials
      • Media Room
      • Award Winners
      • FAQ

    Global Banking & Finance Review® is a leading financial portal and online magazine offering News, Analysis, Opinion, Reviews, Interviews & Videos from the world of Banking, Finance, Business, Trading, Technology, Investing, Brokerage, Foreign Exchange, Tax & Legal, Islamic Finance, Asset & Wealth Management.
    Copyright © 2010-2025 GBAF Publications Ltd - All Rights Reserved.

    ;
    Editorial & Advertiser disclosure

    Global Banking and Finance Review is an online platform offering news, analysis, and opinion on the latest trends, developments, and innovations in the banking and finance industry worldwide. The platform covers a diverse range of topics, including banking, insurance, investment, wealth management, fintech, and regulatory issues. The website publishes news, press releases, opinion and advertorials on various financial organizations, products and services which are commissioned from various Companies, Organizations, PR agencies, Bloggers etc. These commissioned articles are commercial in nature. This is not to be considered as financial advice and should be considered only for information purposes. It does not reflect the views or opinion of our website and is not to be considered an endorsement or a recommendation. We cannot guarantee the accuracy or applicability of any information provided with respect to your individual or personal circumstances. Please seek Professional advice from a qualified professional before making any financial decisions. We link to various third-party websites, affiliate sales networks, and to our advertising partners websites. When you view or click on certain links available on our articles, our partners may compensate us for displaying the content to you or make a purchase or fill a form. This will not incur any additional charges to you. To make things simpler for you to identity or distinguish advertised or sponsored articles or links, you may consider all articles or links hosted on our site as a commercial article placement. We will not be responsible for any loss you may suffer as a result of any omission or inaccuracy on the website.

    Business

    EU Regulations Will Scrap Carry-on Baggage Fees for Air Travel

    Published by Jessica Weisman-Pitts

    Posted on September 28, 2023

    Featured image for article about Business

    EU Regulations Will Scrap Carry-on Baggage Fees for Air Travel

    BRUSSELS (Sur in English) – Air travel in Europe is set to undergo a transformative change, especially for the millions who prefer to travel light with carry-on baggage. The European Parliament has passed a resolution that mandates airlines, particularly low-cost carriers, must stop charging passengers for their hand luggage.

    This move is in line with the European Parliament’s Committee on Petitions (PETI) which has emphasized the need to list hand luggage as an “indispensable item”.

    Consequently, airlines can no longer impose charges on items that can be safely carried within the cabin without causing any security or space issues for fellow passengers.

    The new regulation is the latest in a series of changes to air travel in Europe, which will soon include the need for travellers to be registered on the EU-wide Passenger Name Record (PNR) system.

    It’s worth noting that the EU Court of Justice had already ruled that hand luggage should be free of charge back in 2014. However, airlines had largely ignored this directive, often imposing their own set of requirements on passengers.

    In addition to the baggage regulations, airlines will now have to adhere to standardized weight and measurement criteria for luggage.

    The decision to regulate the luggage market was deeply rooted in a series of events that unfolded in Spain in August.

    The country’s Ministry of Consumer Affairs, after a thorough investigation, initiated proceedings against several ‘low-cost’ airlines that operated within its borders.

    These airlines were under scrutiny for imposing charges on hand luggage that passengers carried in the cabin. While the Ministry did not disclose the names of all the airlines under investigation, it was hinted that these airlines collectively held a market share exceeding 30%.

    Consumer association Facua revealed that complaints had been lodged against major players like Ryanair, Vueling, easyJet, and Volotea for such practices.

    The Ministry’s concerns weren’t limited to just hand luggage charges. They also delved into the extra fees that these airlines often added for services traditionally incorporated in the ticket price. For instance, some airlines charged extra for reserving seats next to dependents.

    The Ministry pointed out that by segregating these services and charging additional fees, these airlines could advertise highly competitive prices. However, the final amount paid by consumers often exceeded the initially advertised price.

    This strategy gave these airlines an undue advantage on online search engines over competitors who bundled these services in their initial pricing.

    The Airline Association (ALA) was swift in its response to these proceedings. They defended the airlines, arguing that such commercial strategies were perfectly legal and fell under a European regulation that allowed freedom in fare setting.

    ALA emphasized that travellers were always informed about the flight’s cost upfront and had the liberty to select and pay for only the services they required.

    However, the tension within the aviation sector was evident. The potential fines for these alleged irregularities ranged from 10,001 to 100,000 euros for serious violations and could escalate to a staggering one million euros for extremely serious infractions.

    If the profits garnered from these practices surpassed these amounts, the fines could be as high as eight times the profit for very severe violations.

    This entire episode was not isolated. It was a continuation of previous grievances, with Facua having filed a complaint against Vueling’s hand luggage charges in October 2021.

    Even earlier, in 2018, the association had lodged a complaint with the State Agency for Aviation Safety and Competition against Ryanair and Wizzair.

    Facua highlighted that these alleged violations contradicted the Air Navigation Act, which mandates that airlines must allow passengers to carry hand luggage in the cabin free of charge.

    The only exceptions to this rule pertain to safety concerns, especially if the luggage’s weight or size could potentially compromise the aircraft’s safety parameters.

    This new regulation aims to eliminate the varying rules set by individual airlines regarding what qualifies as hand luggage. Furthermore, the EU is urging airlines to be more transparent, especially when providing crucial information such as flight prices or timings.

    Another significant development in the European aviation sector is the potential end of budget flights. France is spearheading an initiative to introduce a minimum price on flights within Europe. The primary objective is to mitigate the aviation industry’s contribution to climate change.

    While countries like the Netherlands and Belgium have shown support for the idea, winning a broader consensus might be challenging. The proposed minimum ticket price could particularly impact the business model of airlines like Ryanair.

    In conclusion, changes such as baggage regulation and airline passenger data registration signify a new era for passengers and airlines in Europe alike. While travellers can look forward to a more transparent and cost-effective flying experience, airlines will need to adapt and innovate to stay competitive in this evolving landscape.

    Why waste money on news and opinions when you can access them for free?

    Take advantage of our newsletter subscription and stay informed on the go!

    Subscribe