Airlines ordered to advertise real prices[fr] 

In its proposal of 18 July 2006 to modernise the legislation for aviation, the Commission is looking to tackle remaining barriers to creating a Single Market and to simplify existing rules, according to the EU’s ‘better regulation’ policy. 

• Transparent pricing: Consumers are unable to compare prices offered by airlines because of the different ways in which fares are published. Indeed, some companies advertise all-inclusive fares while others prefer to attract consumers with low basic fees and then add on taxes, charges and other fees in the final stages of the booking process. The Commission is proposing to make it compulsory for all airlines to include all taxes, charges and additional fees in their advertised ticket prices to spare consumers from last minute surprises. 
• Discriminatory pricing: Following a number of complaints from EU citizens, the Commission is taking action to ensure that airlines stop charging different fares for exactly the same ticket depending on which country the buyer lives in. The price demanded by an airline, at the same time of booking, for the same seat in the same flight must be the same for all EU citizens. 
• Enhancing safety through tougher licensing and leasing rules: Airlines must fulfil strict conditions in order to receive an operating licence from a Member State. The Commission is proposing to clarify the criteria for granting such licences to ensure the rules are applied consistently in all EU countries. The Commission will also be improving checks on the financial health of European airline companies. Almost half of new airline companies go bankrupt in the first two years and the Commission considers that financially failing companies are the most inclined to cut costs by side-tracking certain safety rules. Requirements for leasing aircrafts from third countries, for example to meet demand during seasonal peaks, will also be strengthened to make sure that EU security standards are not undermined. 

“Citizens must enjoy the benefits of the Single Market and have the possibility for more choice and quality” said EU Transport Commissioner Jacques Barrot, adding that taking measures to prevent airlines from advertising “misleading air fares” would help European travellers to more easily compare fares between airlines. 

Some observers believe the proposals are particularly intended to target lost-cost carriers such as the Irish company Ryanair. But Ryanair says it will welcome the move, adding that it "already provides passengers with a full breakdown of fares, taxes and charges before any passenger makes a booking". Ryanair’s chief executive, Michael O’Leary called for the proposals to be implemented sooner criticising the ‘EU Transport Commission’ for giving preference to press releases, “instead of taking real action to advance the interests of European consumers.”