The Court of Justice of the European Union has ruled that budget airlines can continue to charge for separate baggage and seating, a business model that has helped airlines such as Ryanair and easyJet to flourish.
Consumers and rival airlines have criticised the use of additional charges for check-in-baggage, overweight bags, allocated seating and priority boarding as hidden fees.
Despite the criticism, the Court ruled that charging fees for check-in-baggage were justified. The ruling overturns a Spanish ruling by the Court for Contentious Administrative Proceedings that had upheld a complaint against Vueling, a budget airline that is part of British Airways and IAG.
The Court ruled that the Spanish legislation prohibiting the application of a fee for checked-in-baggage infringes European Union law.
The processing and storing of checked-in baggage is likely to lead to additional costs for the airline, which is not the case for carried hand-baggage. Furthermore, the extent of the liability of the carrier for damage is greater when baggage is checked in than when it is not.
The case had been taken by a Spanish national, Ms. Arias Villegas, who was charged €40 for two pieces of checked-in-baggage travelling between La Coruna and Amsterdam in 2010.
