The European Union's top regulator tackled misleading air fares today, telling airlines to include taxes and charges in ticket prices so consumers know up front how much a journey will cost.
The proposal, adopted by the executive European Commission, is its latest move to make the EU more consumer-friendly.
Last week the body launched a plan to slash the cost of using mobile phones abroad. The air fare rules are seen especially aimed at low-cost carriers such as Ryanair, whose advertised fares often turn out much higher once taxes and other charges are included.
"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," Transport Commissioner Jacques Barrot said in a statement.
Ryanair said it welcomed the Commission's proposals to make air fares more transparent.
"All passengers who book and fly with Ryanair already receive a full breakdown of fares, taxes and charges before they are allowed to make a booking," it said in a statement.
EU officials said a Ryanair Web site today advertising 4 million seats from 19 pence sterling excluding taxes, fees and charges, would in principle not be allowed under the new rules because the advertised price was not the final cost.
An online booking showed that a Ryanair flight from London to Berlin on September 20th, which started at 1 pence, ended up at £20.04 pounds, including taxes and related charges, check-in fees for one bag and credit card handling.
"The fare shown or price shown should be the price the passenger pays," Barrot's spokesman, Stefaan de Rynck, told a daily briefing.
He said the problem of misleading advertising was spread throughout the industry and not limited to the low-fare sector.
The rules must be agreed by EU member states and the European Parliament, a process that could take a year or more.
The proposal would also give the Commission authority to revoke or suspend airlines' licenses if they did not follow EU rules for operating, such as safety or financial standards.
An EU official said the Commission needed such power in case a member state authority, for political reasons, failed to revoke a carrier's license despite potential safety concerns. He declined to identify any countries that this move could target.
The proposals also call for more frequent submission of financial information such as business plans from start-up airlines to reduce bankruptcies among new carriers. The Commission's proposals are part of a general campaign to open the aviation industry within the EU to more competition.