The European Commission has released a statement welcoming the adoption of the Directive on airport charges by the European Parliament and the Council. The Directive will ensure that air travel fares are fully transparent, making the disclosure of tax levied on fares mandatory and clear.
Welcoming the announcement the European Commission’s Vice-President Antonio Tajani, responsible for transport, said: "I am delighted with this outcome: it is an important first step in addressing airport charges in Community law. Airport charges must be transparent and non-discriminatory, which will benefit the citizens of Europe."
The Directive provides a clear legal framework for setting airport charges and reflects current commercial practices, noted the Commission’s release, adding that once it is implemented, the new legislation will promote better dialogue between airlines and airports to ensure transparency, non-discrimination and appropriate consultation through the oversight of an independent regulator in each Member State.
An investigation undertaken by the UK’s Transport Select Committee (TSC) in 2007 found that taxes and additional fees were often 'hidden' in the purchasing process, rather than transparently advertised as part of the price. In one example in the report, when purchasing a flight which was advertised as being ‘GBP10 including all taxes and charges' the consumer would have to pay an additional GBP25.19 in taxes, fees and charges, described as “Government Tax” (GBP10), “PSC – Non Refundable” (GBP11.40), and “Ins & Wchr Levy” (GBP3.80). These were not disclosed until the third stage of the booking process. A fare, which was initially quoted at GBP10 for a single flight, amounted to almost GBP35.70 per person after the undisclosed extra taxes, charges and fees.
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