Ryanair, Europe’s largest low-cost carrier, is facing a significant legal consequence in Italian: the company will be required to pay passengers who complain about additional fees at airport check-in between 2021 and 2023 following an investigation by the Italian competition authority Antitrust , to reimburse more than 1.5 million euros. This decision is based on the Authority’s finding that Ryanair does not adequately inform consumers of the 55 euro airport check-in fees if online check-in is not fulfilled.
The Italian Competition Authority opened the investigation following numerous complaints from consumers. Ryanair is accused of using opaque business practices to impose additional fees. In particular, it was complained that customers were not clearly informed about the costs incurred if the online check-in was not carried out. The authority also criticized the fact that additional options such as seat selection or luggage were automatically booked for return flights without this being adequately communicated to customers.
Consequences for Ryanair
Following the additional authority’s determination, Ryanair agreed to refund the fees to affected passengers. Over 100,000 customers could benefit from refunds or vouchers. This decision is part of a larger strategy by Italy to strengthen consumer rights in aviation, especially given the market dominance of Ryanair, which dominates the Italian domestic aviation market with a market share of 44%.
The competition authority’s actions are also part of a wider investigation into Ryanair, which accuses the company of exploiting its market position to hinder competition with travel agencies and online platforms. This involves restrictive clauses that could make it more difficult for third parties to access Ryanair offers, as well as disadvantages in additional services that customers book via external platforms.
Impact on the market
The investigation and ruling by the antitrust authority shed light on the often criticized business practices of low-cost airlines, which are known for their attractive base prices, but which often become significantly more expensive due to numerous additional costs and fees. This model regularly leads to conflicts with consumer protection organizations and authorities that demand transparent communication.
Future perspectives
The decision is likely to not only force Ryanair to adjust its business practices in Italy, but could also send a signal to other European markets where similar allegations have been made. In addition, the Italian antitrust authority is working on a comprehensive analysis of the airline to ensure that the rights of consumers are better protected in digital booking processes.
By refunding the fees, Ryanair is taking an important step towards meeting the requirements of the Italian authorities. This may occur at the start of an intensive regulatory review that could impact the company’s long-term business strategy.
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