WRITTEN QUESTION E-0534/03

by Glyn Ford (PSE) to the Commission

(26 February 2003)

Subject: Buying airline tickets is a complete joke. When will the Union act?

Will the Commission agree to examine the question of fair, transparent, and clear pricing of airline tickets across the Union as the practices of many airlines currently make this impossible. In any other business, such pricing practices would raise laughs and consternation:

If airlines sold paint:

Customer: Hi. I'd like some of your EUR 12 paint.

Clerk: Well, sir, the price depends on quite a lot of things, although there are no differences between the paints. Our lowest price is EUR 12 a litre, and we have 60 different prices up to EUR 200 a litre. When do you intend to use the paint?

Customer: I want to paint tomorrow. It's my day off.

Clerk: Sir, the paint for tomorrow is the EUR 200 paint.

Customer: When would I have to paint to get the EUR 12 paint?

Clerk: You would have to start very late on a weekend night in about three weeks. I'll check and see if we have any paint available.

Customer: You have shelves FULL of paint! I can see it!

Clerk: That doesn't mean that we have paint available. We sell only a certain number of litres on any given day. By the way, the price per litre just went up to EUR 16. We change the prices and rules hundreds of times a day. I suggest you purchase your paint as soon as possible.

Customer: I just need five litres. Make that six, so I'll have enough.

Clerk: That's impossible. We make plans based upon the idea that all our paint is used, every drop. If you don't use all the paint, it causes us all sorts of problems and every litre you bought automatically becomes the EUR 200 paint. If you stop painting, you lose your remaining litre of paint.

Customer: But what are all these, Paint on sale from EUR 10 a litre signs?

Clerk: Well that's for our budget paint. It only comes in half-litres. One EUR 5 half-litre will do half a room. The second half-litre to complete the room is EUR 20. None of the cans have labels, some are empty and there are no refunds, even on the empty cans.

Customer: The heck with this! I'll buy what I need somewhere else!

Clerk: I don't think so, sir. You may be able to buy paint for your bathroom from someone else, but you can't buy paint for your stairway from anyone but us. And bear in mind that if you paint in only one direction, it will be EUR 300 a litre.

Customer: And if I buy EUR 200 paint for the hall, but only paint in one direction?

Clerk: Then we'll charge you an extra use fee plus the difference on your next litre of paint.

Customer: I don't believe this!!

Clerk: Thank you for shopping with United.

Answer given by Mr Byrne on behalf of the Commission

(25 March 2003)

In principle, there is nothing in Community law that prevents an airline from price differentiation if there is a legitimate economic rationale for it, such as increasing the load factor. Of course, airlines advertising and marketing must not mislead consumers. The Commission is aware of a number of complaints from passengers about misleading pricing practices in the air transport sector. Indeed, a key aspect of Community consumer and transport policy is that passengers should be entitled to receive comprehensive and clear information. That includes a transparent pricing policy. Omission of essential information may, under certain circumstances, give rise to misleading advertising under Directive 84/450/EEC of 10 September 1984(1) as amended by Directive 97/55/EC of the Parliament and of the Council of 6 October 1997 concerning misleading advertising so as to include comparative advertising(2).

The forthcoming proposal for a framework Directive on unfair commercial practices, which is programmed by the Commission before the summer, will deal with and clarify these matters. In the area of package travel, Council Directive 90/314/EEC of 13 June 1990 on package travel, package holidays and package tours(3) ensures that the pricing of the package tours is transparent for the consumer.

To address the grievances of airline passengers generally, the services of the Commission on 7 June 2002 published a consultation paper on airlines' contracts with passengers. This concerned, among other things, the information the passenger should receive before buying an airline ticket. Paragraphs 42 et seq. in particular enquired about problems perceived concerning fares, tax and charges. The consultation yielded numerous contributions from stakeholders and the Commission services are currently assessing if and what action should follow concerning the problems identified.

Additionally, the services of the Commission are currently preparing a reform of Council Regulation (EEC) No 2299/89 of 24 July 1989 on a code of conduct for computerised reservation systems (CRS)(4) as amended(5). Paragraph 28 of the consultation paper expressly asked for contributions on passenger information at the pre-contractual stage. In the context of this reform, the aim is to ensure an optimal level of price transparency for both travel organisers and passengers.

(1) OJ L 250, 19.9.1984.

(2) OJ L 290, 23.10.1997.

(3) OJ L 158, 23.6.1990.

(4) OJ L 220, 29.7.1989.

(5) OJ C 310, 16.11.1993.