EU bans airlines from hiding taxes and charges
EU airlines will this week be banned from hiding taxes and extra charges when advertising their flights.
By Agencies |
BRUSSELS: European Union airlines will this week be banned from hiding taxes and extra charges when advertising their flights, the EU's executive said on Thursday.
The European Commission also said its new regulations on air services, which come into force on Saturday, gives European nations extra powers to prevent airline bankruptcies, which often leave passengers stranded.
"Airlines will be required to include all taxes and charges in the final price of the ticket ... and this from the moment of publicising the prices," a Commission spokesman told a daily briefing.
"That means no hidden charges, no hidden fees or taxes, full transparency and the possibility of informed choices," he added. The rules also prevent carriers from charging different prices for the same flight if booked from different national websites. And to reduce the risk of airline start-ups going bankrupt they will have to provide more information about their financial resources to national authorities.
"If an air carrier can no longer meet its actual and potential obligations for a 12-month period, the authority shall suspend or revoke the operating licence," said a statement.
The new rules come into force as airlines struggle with a cocktail of soaring fuel costs, slowing consumer demand and the impact of the credit crisis on banking liquidity.
Over 30 airlines have failed worldwide so far this year and a similar number are expected to collapse in coming months, as travel slows in the northern hemisphere winter. The EU's new rules include emergency procedures for the replacement of airlines that fail while serving a remote region or island that depends on the air link for economic survival.
The European Commission also said its new regulations on air services, which come into force on Saturday, gives European nations extra powers to prevent airline bankruptcies, which often leave passengers stranded.
"Airlines will be required to include all taxes and charges in the final price of the ticket ... and this from the moment of publicising the prices," a Commission spokesman told a daily briefing.
"That means no hidden charges, no hidden fees or taxes, full transparency and the possibility of informed choices," he added. The rules also prevent carriers from charging different prices for the same flight if booked from different national websites. And to reduce the risk of airline start-ups going bankrupt they will have to provide more information about their financial resources to national authorities.
"If an air carrier can no longer meet its actual and potential obligations for a 12-month period, the authority shall suspend or revoke the operating licence," said a statement.
The new rules come into force as airlines struggle with a cocktail of soaring fuel costs, slowing consumer demand and the impact of the credit crisis on banking liquidity.
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Over 30 airlines have failed worldwide so far this year and a similar number are expected to collapse in coming months, as travel slows in the northern hemisphere winter. The EU's new rules include emergency procedures for the replacement of airlines that fail while serving a remote region or island that depends on the air link for economic survival.
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