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Ryanair told to end the 1p fare and show taxes
Last updated at 15:37pm on 09.02.07
Budget airlines such as Ryanair and easyJet were warned to end their 1p flights or face heavy fines.
Consumer watchdog, the Office of Fair Trading, said it would take "robust action" against airlines and holiday companies that did not include all taxes and "non-optional" costs such as fuel duties in their headline fares.
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• Luggage charge bags record profit for Ryanair
The "no-frills" carriers have transformed Britain's aviation industry over the past decade by advertising prices for as little-as 1p or even free of charge.
However, these do not include taxes and other costs, which can add as much as £23.45 to a one-way flight.
Some other airlines such as British Airways and bmi already advertise prices as fully inclusive of taxes and fuel charges.
The OFT ruling does not apply to avoidable charges such as baggage fees and in-flight meals.
John Fingletonthe OFT's chief executive said: "Giving misleading price indications to consumers makes it very difficult for them to compare prices offered by different operators.
"It distorts consumer choice and competition and undermines consumer confidence in the market."
The Association of British Tour Operators said it would ensure all members complied with its Code of Conduct requiring them to include all unavoidable charges in prices.
Reader views (6)
Are people unable to think for themselves? More and more directives, more and more time-wasting, more and more bureaucracy. Ryanair have shown themselves to be a top of the range no-frills airline and should now be considered the 'world's favourite' as they carry more passengers than anyone else. All those passengers know very well what they are getting when they purchase a fare - that is why so many do so! Including tax or not in the pricing will not make one iota of difference. People know a bargain when they see one - and Ryanair is probably the most competitive airline around. So Frankfurt Hahn is well away from the city (as Ryanair explain on their website) - well, take the bus that is advertised. Good grief - if you don't like an airline, go elsewhere.
- Bob Westerley, Umeå, Sweden
Ken, London says everyone knows you have to add tax when flying Ryanair, but it is not just tax. It adds fees and charges, which vary from airline to airline. What other industry would get away with trying to bluff customers with their 1 pence offers? If it was so obvious, why not be up front with the true costs?
- Morris, Rugby
It is about time too. If you buy petrol you don't get the price of the product before tax you get the price you care about the one that is coming out of your pocket.
I know people are not stupid and they know they must pay the tax, but it is easier if you can see it quickly.
Next they need to stop them advertising airports as Frankfurt Hahn for example which is nowhere near Frankfurt. Or at least let passengers know they will have LONG coach trip and an additional cost which could make flying direct with some like BA cheaper. That is the area which catches most people out!
- Tom Smith, London
I am very much in favour of the OFT's stance.
Whilst I am aware that the fare price initially quoted on Ryanair's website will not include taxes, and travel frequently enough to be able to arrive at an approximate idea of how much the final price will be, I do find that it makes it harder to compare airlines and it takes longer to research fares as, to arrive at a final price, you have to go through the process of booking a ticket which is a waste of time if all you want is to find the best deal and compare flight times, etc.
Also, taxes have to be paid, regardless of which airline you travel with, so not including them in the initial price but adding them at the end along with fuel surcharges, a charge for checking in individual pieces of luggage, charges to pre-board (if you are travelling with your family, say, and want everyone to be able to sit together) or charges (per person travelling rather than for the individual transaction) for using either a credit or, even, a debit card make it at best difficult to compare fares as you're not comparing like with like and, at worst, do seem misleading and, I have to say, leave a bad taste in the mouth.
- Janna, London
Most people buying tickets through Ryanair know to add on taxes.
Perhaps the OFT should concentrate on the energy companies, that would benefit everyone, not just a few.
- Ken, london
Yes this is disgusting, the Govt and office of fair trading should stop consumers getting value for money , why not tax us if we get a bargain! you are taxing us for everything else!!
- Brian, Swindon
