Airlines Deals

The common practice of airlines, including those in Malta, of advertising cheap flights without including associated costs like taxes and fuel surcharges may soon come to an end following the publication of new proposals by the European Commission last week.

The proposals, unveiled by Transport Commissioner Jacques Barrot, will make it impossible for airlines to advertise fares which do not cover the real cost to the consumer.

The proposed regulations lay down that fares advertised by airlines should include all applicable taxes, charges and fees.

This measure completes the Unfair Commercial Practices directive which requires that information on prices should include taxes as of December 2007.

Commission sources told The Sunday Times that the purpose of the regulations was to make it easier for consumers to compare fares and not to be misled. The proposals also prohibit price discrimination between passengers solely on the basis of their place of residence within the European Union.

The new proposals come at a time when Europe is facing an aviation revolution particularly with the mushrooming of low-cost airlines, which has substantially brought down travelling prices.

The Commission said that during the past 10 years, air transport in Europe has experienced unprecedented expansion at affordable fares.

The number of airlines has risen and there has been a general increase in the amount of traffic and competition on routes. Since the full liberalisation in 1997, the number of routes has increased by more than 60 per cent and more cities are now covered.

Commissioner Barrot said that Europe needs to consolidate its success in this sector by removing all restrictions to the free provision of air services and ensuring fair competition between airlines.

“Citizens must enjoy the benefits of the single market and have the possibility for more choice and quality. They must be able to easily compare fares between airlines”.

The rules also clarify the criteria for the granting and validity of a licence to operate in the EU. Such criteria include the financial situation of the air carrier and the ownership and control of the company.