New EU regulation could ruin Wizz Air and Ryanair

Different airline rules on baggage restrictions result in hidden charges and make it difficult to compare prices, according to MEPs. If the European Parliament is able to achieve a harmonisation of baggage prices, it could have negative consequences especially for Wizz Air and Ryanair.

The MEPs’ resolution concerning pricing of hand luggage

At its plenary session in Strasbourg, the European Parliament adopted a resolution calling for the adoption of EU legislation to make it compulsory for airlines to set uniform standards for the size and price of hand luggage, the European Parliament said on Wednesday, as reported by hvg.hu.

In the resolution, MEPs drew attention to the inconvenience and discomfort caused by inconsistent airline cabin baggage rules. They called for a review of EU legislation on air passenger rights. They pointed out that different airline policies on baggage allowances result in hidden charges and make it difficult for passengers to compare prices. If passengers use different airlines or need to change their plans, conflicting rules cause confusion.

They also stressed that the European Commission should fully implement the relevant judgement of the Court of Justice of the European Union when reviewing the current EU aviation legislation. The Court of Justice has previously ruled that airlines cannot charge a surcharge for cabin baggage “provided that such cabin baggage meets reasonable requirements as to weight and dimensions and complies with applicable security requirements”.

Wizz Air and Ryanair in danger?

According to Okosutas, there is also an important principle that everyone should be free to price their products: this will have to be reconciled with the current resolution plan. The aviation news portal says it’s unlikely that any of this will happen, but if it does, it could hurt the two ultra low-cost carriers (Hungarian Wizz Air and Irish Ryanair) the most. These two have the highest share of revenue from ancillary services.

Wizz Air is particularly dynamic in pricing its packages. The airline can tempt passengers with a very cheap ticket because the package will be expensive: however, many passengers only realise the latter too late. Wizz could not do that with a fixed fare.

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