e-tid - Greater transparency promised for passengers

Greater transparency promised for passengers

31 Oct 2008
New European Union rules compelling airlines to include all taxes, fees and charges in their published ticket prices come into force on 1 November.
 

The change is part of a shake-up in the European single market for air transport, which aims to ensure more competition and a better deal for passengers.

Antonio Tajani, vice-president of the European Commission with responsibility for transport, said: ‘It is vital that all the players keep to the same rules. That is one condition of liberalisation in Europe that has been a real success story, with more travel possibilities and lower prices.

‘Fair competition is the key to success: with price transparency, passengers will know in advance how much they are going to pay and will be able to make informed choices.’

Since the 1997 liberalisation of air transport in the EU, the aviation industry has seen unprecedented growth.

The number of routes has increased by more than 60% as more cities are served, particularly in remote areas. The emergence of new competitors has brought price reductions on many routes, allowing more Europeans to travel by air.

The new rules coming into force tomorrow are ‘a substantial improvement on the present legislation’, according to an EU statement.

They will ensure travellers are better informed and able to compare prices, and any price discrimination between passengers solely on the basis of their place of residence in the EU or their nationality will be prohibited.

The regulations also ensure stricter and more harmonised application of the rules covering airlines’ operating licences; the leasing of aircraft; public service obligations; and cooperation between airports serving the same city or conurbation.

See also:
EP votes in favour of new transparency rules (10/07/08)
Consumers still being misled by online pricing (09/05/08)
ABTA urges OFT action on Ryanair (28/02/08)
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)