European ultra low cost carrier Ryanair is known for its incredibly low base fares, and endless optional fees. Over time, the airline has faced quite a bit of regulatory scrutiny over how it does business.
Just last week I wrote about how the airline “reluctantly” updated its family seating policy, after facing scrutiny in the United Kingdom. Now the airline is potentially facing an even bigger challenge in Austria, as the country’s highest court may force the airline to make several updates to its pricing structure.
In this post:
Austrian supreme court rules that Ryanair’s terms are unlawful
In recent times we’ve seen the Austrian Consumer Information Association (VKI) challenge aspects of Ryanair’s terms & conditions in court, and the case went all the way to the country’s supreme court.
The court has now ruled that 14 clauses in Ryanair’s terms & conditions are unlawful, and is requiring Ryanair to stop using the contested clauses in the country within three months. The main fee that was being challenged is Ryanair’s €55 airport check-in fee, which is quite controversial, naturally. Beyond that, though, the court also ruled that the €15 boarding pass fee, €25 infant fee, €70 oversized hand baggage fee, and €100 rebooking fee for missed flights, are all unfair and not transparent.
The consumer organization claims that those who paid these fees in the past are entitled to a refund, though Ryanair denies that claim, and I imagine that this isn’t the end of litigation that we’re going to see.
This ruling all centers around Ryanair violating Section 879(3) of the Austrian Civil Code (ABGB), which says the following:
“A contractual provision contained in general terms and conditions (Allgemeine Geschäftsbedingungen, AGB) or standard contract forms, which does not determine one of the principal obligations of the parties, is void in any event if, taking into account all the circumstances of the case, it places one party at a gross disadvantage.”
Will Ryanair have to radically alter its business model?
Ryanair is the most flown airline in Europe, and while it maybe doesn’t have the best reputation, people fly with the carrier for its nonstop routes, low fares, and reliability. While Ryanair is largely villainized for how its fares are structured, I personally kind of feel like there’s a bit of over regulation with the airline.
If you ask me, Ryanair is mostly transparent about what is and isn’t included with tickets. Just because the airline has an unconventional pricing model doesn’t mean there’s anything wrong with it, in my opinion. Now, let me say that I’m not a fan of some of Ryanair’s labor practices to keep costs down, but that’s a different topic, separate from this debate about consumer protection.
Anyway, Ryanair has long played hardball with regulators, and has sort of gone on the offense against them. However, it sure feels to me like Ryanair is facing an increasing amount of scrutiny which might really challenge the carrier’s approach to how it sells tickets.
For example, what if Ryanair is actually forced to comply with these new regulations within three months? As I see it, there are three ways this could play out:
- The airline could simply discontinue all flights to Austria, to send a message to other regulators, viewing this as an existential “line in the sand”
- The airline could update its policies across the board for all flights, but that would represent a radical departure from the Ryanair business model that people know
- The airline could simply update its rules for flights to and from Austria, which seems like it would create even more consumer confusion, and would likely only lead to other regulators following Austria’s lead
Between this and the European Union soon updating rules around how fares can be marketed (to require a carry-on with the advertised fare), I imagine there must be some cussing going on at Ryanair headquarters in Dublin.
Bottom line
The Austrian supreme court has ruled that many aspects of Ryanair’s terms & conditions are unlawful, including fees for airport check-in, printing boarding passes, and much more. The argument is that these terms put consumers at a gross disadvantage.
While Ryanair’s fee structure is disliked by many, that’s balanced by low base fares, and I personally think the airline is fairly transparent. Ryanair now has three months to update its rules for Austrian consumers, so I’m curious to see how this goes.
What do you make of Austria’s supreme court ruling on Ryanair?
Seems like " we have lawyers who understand the law, but prefer to see if we can get away with breaking the law " should result in punitive penalties.
Easyjet is a much more professional organization for not much more, without any of the song-and-dance and fee-gouging over at Ryanair. Personally would never fly an airline that literally insults its passengers, but I guess some of the audience has a low price threshold for abuse.
I flew Ryanair last year DUB-PRG. Check-in could only be done on one's phone and I couldn't get it to take. I was also unable to print my boarding pass as I had just come off a DL flight from BOS and I had no place to print a boarding pass and as I mentioned, couldn't check in.
I expected the worst at the counter in DUB but the employee was friendly, didn't worry about...
I flew Ryanair last year DUB-PRG. Check-in could only be done on one's phone and I couldn't get it to take. I was also unable to print my boarding pass as I had just come off a DL flight from BOS and I had no place to print a boarding pass and as I mentioned, couldn't check in.
I expected the worst at the counter in DUB but the employee was friendly, didn't worry about my issues and she checked me in and printed my boarding pass, all without fees.
But I do agree with the regulators that if you purchased a ticket, an airline should not be able to hit you up for more money because you didn't check-in before the airport or could not obtain a boarding pass for something you already paid for. That's a scam.
Ryanair display their policies, if you don't like them use another airline!
Although, I do think some policies i.e. name changes are extortionate. Some you win some you lose
How about… no. Consumer protections are more important than arbitrary corporate rules.
There's always cussing going on at Ryanair HQ. Thats how they speak.
Oh dear BOT no!Opinions vary.. are you paid-for yours?
Flying with RA is the worst. Unfriendly, rude and horrible seats.
I've flown with them for decades and never had a problem.
Yes. Great news.
I agree with Ben. From all ULCCs I like Ryanair the most. As long as they are clear in the booking process of what is included and what not its fair. Having a high oversized handluggage fee is good for passengeres, as it reduces delays. The airport check-in fee is a bit stiff, I feel a fair price would be to just pass-on whatever fee they have to pay to the check-in desk.
What’s their normal seat pitch in Y and how much do they charge for extra legroom seats? Thats all I’m really interested in. Im 5’8”…
1. minimal
2. very reasonable
I can't imagine flying Ryanair. the contempt for their customers is wild.
If you have never flown Ryanair how can you say they have contempt for the customer, I often use them and as I am able to read i know exactly what the terms and conditions are and am completely satisfied with the service I receive
I've flown with RyanAir. At no time did I feel that I was uninformed about their pricing practices. I thought it was a "cattle call" and "sardine tin" seating; I got exactly what I paid for...and reaching my destination was as cheap as I could make it.
It seems to me personally that your enormous legal abilities should be running the Austrian legal system.
If you don't like the way a company conducts its affairs, don't give them your business. If you don't like the way the airline treats you as an employee, go somewhere else. Period. Let the market dictate what is and isn't acceptable. If it isn't acceptable, the company will have no revenue and/or no employees, which will force it to change or go out of business.
Regulations are rarely the answer. There are exceptions of...
If you don't like the way a company conducts its affairs, don't give them your business. If you don't like the way the airline treats you as an employee, go somewhere else. Period. Let the market dictate what is and isn't acceptable. If it isn't acceptable, the company will have no revenue and/or no employees, which will force it to change or go out of business.
Regulations are rarely the answer. There are exceptions of course, but not many of them, and this certainly isn't one.
Markets have time and time again shown that they cannot be trusted to behave in an acceptable manner, and as such regulations are required. Consumers and Employees do not always have the option of voting with their feet. For example, if there is a race to the bottom then the market forces there to be no middle ground, no sensible option. Everyone decends to the lowest common denominator. Rampant unfettered market driven capitalism is as...
Markets have time and time again shown that they cannot be trusted to behave in an acceptable manner, and as such regulations are required. Consumers and Employees do not always have the option of voting with their feet. For example, if there is a race to the bottom then the market forces there to be no middle ground, no sensible option. Everyone decends to the lowest common denominator. Rampant unfettered market driven capitalism is as detrimental to consumers as communism.
That being said, in general Ryanair is usually pretty clear these days on whats included. There are exceptions- digital only boarding passes, charging for seating so as to comply with safety regulations to name a few.
Markets have time and time again shown that they regularly behave in an acceptable manner, and as such regulations are rarely required. It is so funny to hear people who have no professional experience in the study of markets think their casual observations are valid.
2-3 of their fees are bs, but overall the rest are acceptable -as long as they’re clear terms and posted at appropriate times, let merchants price.
Why don’t these govts do something about tax codes that are clear as mud with alice and wonderland logic??
Personally, I love the transparency of Ryanair. You know, at the base price, you’re getting nothing but a place on the plane. You wanna go somewhere? We’ll take ya. You want luggage? Extra. You want to choose your seat? Extra. You want us to print something? Extra. You want us to pay someone to stand there and check you in? Guess what, you’re gonna have to pay for them. You know exactly what you’re getting...
Personally, I love the transparency of Ryanair. You know, at the base price, you’re getting nothing but a place on the plane. You wanna go somewhere? We’ll take ya. You want luggage? Extra. You want to choose your seat? Extra. You want us to print something? Extra. You want us to pay someone to stand there and check you in? Guess what, you’re gonna have to pay for them. You know exactly what you’re getting for your (relatively little) money. So quit your jibber jabber and get on the plane. Drink, Sir? Extra
I guess it works if they have niche routes, but not if you have a choice.
"I guess it works if they have niche routes, but not if you have a choice." Ryanair flys many routes where they are the only n/s option. They also fly numerous routes where you have non-ULCC n/s options. But, they thrive in both. So, no, there not just a niche market success.
Ryanair is the best value and on time airline that has existed in Europe since 1990. ATC and airports are the problem. Polititians and regulatory are totally captured by populist philosophy of expecting everything and never asking how it is costed.
Since when? Hehe.
I always love the hate Ryanair receives, and it seems like from keyboard warriors who probably haven't flown the airline. I lived in Spain for few years in my 20's and Ryanair was my ticket to exploring the continent for next to nothing. I paid attention to the rules and never had a single issue, the airline always got me to where I was going. Seems like those who take issue are self entitled and unaware.
Enjoy being angry.
Ryanair intentionally splits up passengers on the same booking to try to force them to pay for seats, its a vile practice. Random seat assignment, fine, but splitting ppl up around the plane? They deserve all they get.
The second reason its great when regulators put them back in their box is their twitter acct that acts like crappy customer service is something to be applauded.
It's not a vile practice if they are upfront about it (which they are)
I have no experience with ryan air. How do their fares lineup agaisnt other full service airlines once you add in all the extras? We have jetstar here in australia and new zealand. I found that once you click on their bait fares and then add on the seat allocation, meals, luggage etc I then iust end up booking air nz or qantas as the price differential ends up being quite small.
Whoever defends ryanair completely ignores the human psychology and consumer behaviour. Ryanair uses it brilliantly. However I am sure how law can take those into account. In terms of unfair practices it seems like the law protects against this but I doubt it is clear cut. It would be interesting to see the legal arguments discussed in this case or similar ones
Sounds familiar, though.
Basic hotel fee: only USD 10.-.
- You want a bed in it: USD 50.-
- You want to use the water? Another USD 30.-
- Electricity? USD 20.-
- Oh, you did not see the resort fees in the small print? USD 34.- Included in this is beautiful view of the garden and pool. (not the use of it, this is extra)...
Obviously, you're trying to fe funny. But, while no hotel would follow such a path, I'd still be OK with it. So long as things are transparent, I know what I'll pay for what I want. And, of course, the most unbundled thing on Ryanair is a seat on a flight with the right to put a bag of any weight under the seat in front of you. For many, that's all the want for...
Obviously, you're trying to fe funny. But, while no hotel would follow such a path, I'd still be OK with it. So long as things are transparent, I know what I'll pay for what I want. And, of course, the most unbundled thing on Ryanair is a seat on a flight with the right to put a bag of any weight under the seat in front of you. For many, that's all the want for a 90 minute flight. Nobody's looking for a hotel room with no bed, electricity, or water. Thus, no such thing is offered. (Yes, you can get a room with a shared bath, and thus, no water in your room in places around the world.)
I tend to agree with you in general, but there are times when they push it too far.
Digital only checkin / boaring passes through their own app.
Charing for families to adhere to safely regulations.
Actively splitting up people in bookings (this must be more complex than just assigning down a list, and thus must cost them more).
Some of fees when things 'fall out of the norm' do seem to lean towards extortion...
Funny but...reminds me of the easyhotels when those were launched! You can purchase shampoo, shower gel bottles at reception. Want to watch tv in a room? 5 pound remote rental fee. Hairdrier - 3 pounds, and, of course paid-only wifi.
While I hate overregulation, this is well deserved for Ryanair. They not just treat their customers like a piece of kettle but they also treat their employees the same way. Quite disgusting and for that reason I love every bit of regulation which limits of how Ryanair is conducting business. I avoid them like the plague.
"While I hate overregulation..." and "...I love every bit of regulation..."
"I was for the war, before I was against it."
You have a future in politics.
read to the end and don't cut off the sentence
I did "read to the end," and you wrote you were against regulation and for regulation. You can't have it both ways without being a hypocrite.
Hypocrite like the current US administration.
Your comment is SNUP ie Serves No Useful Purpose. just saying…
Just bought 4 new suitcases as ours are 1 cm too wide!
I'd argue Ryan is generally as transparent as an airline can be. Not a good move.
It's kind of interesting to see in the US that customer preferences are pushing all airlines to become the same airline in different liveries, while in Europe it looks like the government is pushing all airlines to become the same airline in different liveries
It already doesn't fly to Austria. It goes to "Bratislava Vienna".
5 Austrian destinations including actual Vienna. :rolleyes:
When you use the Pick a Country, it shows 4 Austrian departure airports: Klagenfurt, Linz, Salzburg and Vienna.
So Bratislava isn't included, and the 5th Austrian destination isn't included.
Perhaps ORD was not counting Lauda Air destinations as Ryanair destinations, but Lauda is fully owned by Ryanair and they are different flavours of the same company.
No, ORD was making a bit of a joke since the whole "Bratislava Vienna" thing is rather infamous. Advertising the capital of a neighboring country as a substitute for the capital of another country...the mind boggles.
Didn't your male guardian teach you proper manners in terms of not talking to a male without being spoken to first?
ORD is peak schizo
Bipolar Type II, actually.
Debundling makes sense if the costs to customers are in line with the cost to provide.
Ie, take away the free meal and replace with $10 optional purchase. It can be argued that $10 is a reasonable cost for a sandwich because that's in line with what others charge.
But it doesn't cost Ryanair €55 to provide airport check-in services, it's there as a punitive measure. If you turn up at the airport what are you going to do, not check in?
Yes, 55€ is designed to be punitive. They are not trying to make money on that fee. They want nobody to pay it. Why? Because if they get 100% online check in, combined with the roll out of bag check in kiosks, this means they can have minimal staff for the check in area. It's like a parking fine; its intent is to discourage behavior (not checking in online) rather than enhance revenues.
They still have to pay someone to stand at the desk if even one person shows up to airport check-in.
I'm surprised they don't charge for breathing ssshhh
Ryanair pricing is not "balanced" - it's built on a classically deceptive "bait and switch" scheme, where the airline appears to offer an attractively low fare but then tacks on a bunch of post-purchase extras. You are defending an intentionally deceptive scheme.
The fees are transparent and displayed upfront. What an idiot comment.
Funny that so fly Ryanair repeatedly. Maybe, they are smarter than you think they are (despite the occasional story for clicks). Don't project your inability to comprehend their very simple rules on others.
maybe doesn’t have the best reputation, people fly with the carrier for its nonstop routes, low fares, and reliability.
RELIABILITY?!?! . . . as much as i think you do know the rules and fine-print of this airline, BUT it most obviously shows that YOU never flew it.
If (and it happens quiet regular on new routes, low season flights, overpriced routes on FR) The airline simply cancels a flight, refunds you the...
maybe doesn’t have the best reputation, people fly with the carrier for its nonstop routes, low fares, and reliability.
RELIABILITY?!?! . . . as much as i think you do know the rules and fine-print of this airline, BUT it most obviously shows that YOU never flew it.
If (and it happens quiet regular on new routes, low season flights, overpriced routes on FR) The airline simply cancels a flight, refunds you the money that you paid often far in advance and this airline worked with it, but since they don't cooperate with any other airline or interline with any IATA carrier, they simply think that's it. Refund the money paid and good, that on some routes the fares from date of purchase till day of flying or their date of cancelling a flight will 100% lead to a higher fare on a competing airline. They DON'T even try to re-book you on any other carrier, unless they have an own flight on the same route, 3 days later!
Reliable . . . has a VERY different meaning to me.
Ryanair is like a bug in a System that's full of parasites already!
Let's hope this new court ruling from Austria is being forced all over Europe!
. . . i personally think, if this would just be an example for other states too, i bet RELIABILITY in aviation will climb to a different level again, also within so called legendary carriers like LH-Group or IAG. Those are not just bugs, these are those parasites that constantly try to overrule ANY government with an entire crew of lawyers and corrupt politicians in each country, to get what they want.
So: Fair rules and fees all over!
NO exceptions for Lowcost, non IATA or Charter carriers (cockpit visits mid-air, wild alcohol parties with obvious drunk charter passengers) . . . ALL this needs rules from the head of it all. IATA and federal aviation offices globally . . . so that flying becomes safe and reliable as it is supposed to be!
People forget, that you DON'T always get, what you pay for! 55€ for check-in at the airport instead of online, what do i get for those 55€, a paper receipt, nothing else! It's NOT worth the charged fee! Time to set examples!
NO special treatments of carriers that think, they can set their own standards and rules.
Airfares are regulated, so why are not ALL rules of carriage are standardized too?
It's all politics! . . . time to regulate this entire industry and make it a FAIRPLAY game for all, airlines, regulators AND paying passengers. (GLOBALLY) Kudos to Austrian supreme Court and the AT Consumer Information Association. 1 step in the right direction.
Partly agree on the comment regarding reliability... Ryanair isn't actually as bad as most major European airlines in terms of percentage of flights cancelled (LH, AF, KL, BA, etc. are definitely more prone to cancellations), however, the concept of "duty of care" is something completely unbeknownst to them. While most other airlines will rebook you on a similar alternative or a later flight, Ryanair does indeed usually just issue a refund and call it a...
Partly agree on the comment regarding reliability... Ryanair isn't actually as bad as most major European airlines in terms of percentage of flights cancelled (LH, AF, KL, BA, etc. are definitely more prone to cancellations), however, the concept of "duty of care" is something completely unbeknownst to them. While most other airlines will rebook you on a similar alternative or a later flight, Ryanair does indeed usually just issue a refund and call it a day as if nothing happened... which for an airline that flies the types of routes Ryanair does, is not as straightforward to book alternative flights, let alone at a somewhat similar flight.
Other than that, I couldn't agree less. You pay what you get, plain and simple. If someone is doing a day- or weekend trip, most people won't *need* a carry-on. Heck, maybe some people won't even need one on a 2 week trip! So why should they now be forced to pay for this? Because it's not like Ryanair is going to subsidize the cost of these court rulings (from AT and ES) as well as the EU proposal. Also, the check-in fee seems logical to me: If a company is putting a service (like onsite check-in) at the disposal of customers, but a more convenient and widely-used alternative (online check-in) is also available, why should the company continue bearing an unnecessary cost (redundant staffing and rental space)? That's specially true when you're an LCC/ULCC that is trying to offer the best prices. And legacy carriers may not do this, but I know for a fact that at least one major European carrier has considered doing this at mid- and small-sized European airports beyond their focus cities. Besides, if you try to do the online check-in but have issues doing it, they won't charge you. This is similarly the case with the boarding card printing fee.
Even as someone who doesn't fly Ryanair/(U)LCCs, I can clearly acknowledge that not only have they brought something positive to the market in terms of keeping legacy carriers on their toes, but also if all these regulations do end up going forward, European air travel will become even more expensive across the board than it has become in the past few months.
"55€ for check-in at the airport instead of online, what do i get for those 55€, a paper receipt, nothing else! It's NOT worth the charged fee!"
Then, check in online. That's what they want, not the fee.
I suggest that the extra regulation you want would create an industry you would hate.
To me it is fairly simple. If it is obligatory to do something like check in, how can there be a fee for that. It's not optional. Other fees like oversized carry-on, all excessive, should be permitted. People will decide whether or not they want to keep paying that fee. Perhaps one option is to have everything mandatory included with the price I.e baggage, seat selection, etc. But give a discount if you don't use...
To me it is fairly simple. If it is obligatory to do something like check in, how can there be a fee for that. It's not optional. Other fees like oversized carry-on, all excessive, should be permitted. People will decide whether or not they want to keep paying that fee. Perhaps one option is to have everything mandatory included with the price I.e baggage, seat selection, etc. But give a discount if you don't use those things. No one complains about getting a discount.
@JN You can check in for free on the app. They charge to have an agent standing there doing something that anyone with a smartphone can do for themselves. I'm happy to save money to do something myself.
As long as the fee isn't charged in the event the online check-in doesn't work, that seems fine.
Airlines have been fee-scamming everyone for some years now . The worse one is the "corkage charge" when they hand you an unopened beer .
what on earth are you on about?
They will pull out before they change their model.
Be careful what you wish for, Austria.
they're well gone!
The start after the "out" of Nikki and airberlin was way too easy for FR to get started to begin with!
Looking at social media, there is that trend right now pushing back on unbundling... with the unreasonable expectation that airfare would stay the same if all the "perks that people used to enjoy for free" would now be rolled back into base airfare. From that perspective, it is not surprising to see the EU somewhat moving in that direction.
Back to the matter at hand, I see a fourth path where Ryanair looks at the...
Looking at social media, there is that trend right now pushing back on unbundling... with the unreasonable expectation that airfare would stay the same if all the "perks that people used to enjoy for free" would now be rolled back into base airfare. From that perspective, it is not surprising to see the EU somewhat moving in that direction.
Back to the matter at hand, I see a fourth path where Ryanair looks at the ruling, and makes minor cosmetic changes to comply, effectively sending the matter back to litigation at some point in the future...
Personally, I don't mind unbundling but hate the lack of price transparency. At this point airlines publish prices no one really pays, just to get on top of the search result. This makes price comparison websites outright useless since the price they display has nothing to do with what I pay. On longhaul J trips I just mentally ignore airlines that offer "business light" fares (Etihad, Qatar etc) unless they're super cheap, but on shorthaul...
Personally, I don't mind unbundling but hate the lack of price transparency. At this point airlines publish prices no one really pays, just to get on top of the search result. This makes price comparison websites outright useless since the price they display has nothing to do with what I pay. On longhaul J trips I just mentally ignore airlines that offer "business light" fares (Etihad, Qatar etc) unless they're super cheap, but on shorthaul economy it's really hard.
As a solution, I'd ideally want a search engine where I can enter what exactly I need (baggage, seating, whatever) and what status I have, and it would produce the actual prices for the stuff I want. But that's unlikely to ever materialize.
@Samo - You're pretty much describing exactly what IATA NDC capability is about.
Great observation. "We don't like this unbundling, so add things back without raiding prices."
The BP fee no longer exists. The check-in fee - how many people actually pay that these days? It will hurt a bit, but most people prefer to check-in online. The baggage fee is imho the most problematic and one where I really don't understand the court's reasoning as it's a perfectly logical thing to charge for.
As a side note, FR has been expanding rapidly in BTS in recent months, so I can see this prompting them to move more capacity from VIE to BTS (like W6 did).
There are stories of people who couldn't check in online (e.g. due to having an exotic passport) and were then charged the fee.
I agree that a move to BTS is the most logical response to this ruling - in fact, I'm surprised they're still flying to VIE which must be costlier and more complicated than its Slovakian neighbour.
Charging the fee when online check-in isn't available is not in line with the policy though. I heard those stories too but they seem more like a mistake of the agent / handling company.
Yeah, if you have trouble checking in on Ryanair, screen shot the error message. They should waive a check in fee.
I think Ryanair doesn't want loose Austrian market. It is a very important VFR market . It will require some changes. These additional fees are getting out of control. Some fees i can understand, but they are ridiculous too high.
FR needs the money!
..... as long as there is no set rules from any higher authority, they will keep doing what they want!
Most of Austria can be served without landing in Austria though ;)