e-tid - EP votes in favour of new transparency rules

EP votes in favour of new transparency rules

10 Jul 2008
The European Parliament has approved new EU rules stating headline airfares must include ‘all taxes, fees and charges added to the basic ticket price and known at the time of publication’.
 

In a statement Wednesday, the EP said the new rules would apply to all airfares ‘that are addressed directly to the travelling public, including on the internet’.

It added that the minimum information to be provided must include the airfare together with taxes and airport charges and other surcharges or fees, such as security or fuel.

Where security charges, whether airport or onboard, are included in the fare, they must be shown separately on the ticket or otherwise indicated to the passenger.

And, whether levied by Member States, airlines or other entities, security taxes and charges ‘must be transparent and be used exclusively to meet airport or onboard aircraft security costs’.

Furthermore, optional price supplements ‘must be communicated in a clear, transparent and unambiguous way at the start of any booking process and their acceptance by the consumer must be on an opt-in basis’.

Commenting on the decision Lithuanian MEP, Arunas Degutis, said: ‘This regulation promotes price transparency for the passenger and fair prices.

‘The passenger has a right to know the actual price of the ticket, including taxes and extra charges. It is misleading to advertise a ticket at €1 or €2, when the actual cost is actually much higher.’

Brian Simpson, Labour MP, added: ‘Apart from flight delays, the most complaints that I receive against airlines concern the way that they lure people with what appear to be low fares and conveniently tell them the true cost only at the very end of the process. Low fare airlines have perfected this art over recent years.

‘Now, not only will the customers see the true price, but also the security taxes levied by national governments will have to be highlighted separately.

‘This transparency has to be a good thing, and I hope it will end what has been over recent years an exercise in deceit by some airlines which try to con the travelling public into believing they are buying a very cheap ticket when the opposite is true.’

The new rules on airfare transparency, which will apply to all flights departing from a Member State, form part of a regulation that updates existing EU legislation on a range of air transport issues.   

These include stricter controls on the financial situation of airlines to ensure that, if a carrier is on the verge of going bankrupt, passengers' rights can be safeguarded, the EP said, without giving further details.

The new regulation should enter into force later this year or early next, it added.

See also:
Consumers still being misled by online pricing (09/05/08)
ABTA urges OFT action on Ryanair (28/02/08)
Holiday Which? lays into LCC pricing model (08/01/08)
OFT takes action over misleading prices (11/05/07)
OFT warns airline bodies over misleading pricing (09/02/07)
MPs press OFT on airline website pricing (20/07/04)