Government launches consumer protection inquiry into Ryanair

Image by Peter Krocka / Shutterstock.com
Márton Nagy, the economic development minister, said on Friday he had initiated the launch of a consumer protection inquiry into Ryanair after the low-cost Irish carrier began passing on the cost of the tax to profits Hungary’s outstanding airlines to consumers, according to a report by state news. MTI thread.
“The government considers it unacceptable and rejects in the strongest terms Ryanair’s transfer of the special extra profit tax levied on airlines to passengers,” Nagy said in a statement sent to MTI.
“It is particularly harmful that Ryanair started this practice in relation to tickets sold earlier,” he added.
Authorities will undertake a thorough investigation with a view to consumer rights and prevent the airline’s unfair business practices where possible, the statement said.
The Hungarian government levied exceptional taxes for a period of two years on the banking, insurance, energy, retail, telecommunications and pharmaceutical sectors, in addition to airlines, in order to guarantee the resources necessary to protect the system of regulated tariffs for public services for households and to modernize the country’s army. defense.
The statement said the government is “closely monitoring market trends” and will do “everything in its power” to prevent the cost of the windfall taxes from being passed on to consumers.
“Investigations will be carried out in each case and firm action will be taken against harmful practices,” he added.
Nagy said he had also launched an investigation to determine whether Ryanair’s ticket pricing practices comply with all European standards and requirements.
The Budapest Metropolitan Government Office said later on Friday that it had ordered an immediate investigation into Ryanair’s consumer protection.
A government decree obliges airlines to pay a contribution of 3,900 HUF per passenger for travelers on flights to European Union countries as well as destinations in Albania, Andorra, Bosnia and Herzegovina, North Macedonia, Iceland , Kosovo, Liechtenstein, Moldova, Monaco, Montenegro, United Kingdom, Norway, San Marino, Switzerland, Serbia and Ukraine. The contribution for other destinations is 9,750 HUF per passenger.
SUPPORT THE BUDAPEST BUSINESS JOURNAL
Producing decent journalism is an expensive business. For 27 years, the editors, editors and reporters of Budapest Business Journal have strived to bring you business news that works, information you can trust, that is factual, accurate and presented without fear or favour.
News organizations around the world are struggling to find a business model that allows them to continue to excel, without compromising their ability to perform. More recently, some have experimented with the idea of involving their most important stakeholders, their readers.
We would like to offer this same opportunity to our readers. We would like to invite you to help us provide the quality business journalism you need. Hit our Support the BBJ button and you’ll be able to choose how much and how often you send us your contributions.