Ryanair Files European Fuel Surcharges Complaint
AFP | Oct. 12, 2007
Irish low-cost airline Ryanair said on Oct. 11 that it had lodged a formal complaint with the European Commission over recent fuel surcharge increases from Lufthansa, Air France-KLM and Swiss.
Last month, German flag carrier Lufthansa, Air France, KLM of the Netherlands and Swiss all said they would add the surcharges to their ticket prices in response to surging oil rates.
Ryanair contended in a statement the surcharge increases amounted to "blatant price fixing" between four airlines -- an accusation denied by Lufthansa and Air France -- that accounted for about 30 percent of the European short-haul market.
"In a six-hour period on Sep. 25, Lufthansa, Swiss, KLM and Air France all increased their fuel surcharges by another EUR5 to as high as EUR70 per seat," said Ryanair chief executive Michael O'Leary.
"This latest abusive increase in fuel surcharges highlights the lack of competition between the European mega-carriers, who continue to gouge European consumers by imposing bogus fuel surcharges."
But a Lufthansa spokesman in Frankfurt insisted: "The charges by Ryanair are absolutely unfounded."
"There was not and is not any cooperation on prices with competitors."
As for Swiss, a subsidiary that Lufthansa has integrated fully into its accounts since mid-2007, "we must on the other hand agree on prices and tariffs," the spokesman said.
In Paris an Air France spokesman insisted there had been no arrangement "among competitors" but said that as "Air France and KLM are units in the same group our accounts are integrated and we have the right to coordinate our prices."
Last August, British Airways faced turbulence when US and British competition authorities slapped the airline with fines totalling 270 million pounds (US$550 million, EUR400 million) for price fixing on fuel surcharges.
South Korea-based Korean Air was also hit with a US$300 million fine over similar charges by US authorities.