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Hungary Investigates Ryanair Over Passing Tax Costs Onto Passengers; Spanish Cabin Staff To Strike

Published on Jun 13 2022 12:15 PM in General Industry tagged: Ryanair

Hungary Investigates Ryanair Over Passing Tax Costs Onto Passengers; Spanish Cabin Staff To Strike

Hungary's government has launched a consumer protection investigation against Ryanair RYA.I over passing the costs of recently imposed windfall taxes onto passengers, state news agency MTI said on Friday 10 June, citing the government.

Details

MTI said the probe would look into whether the air carrier was conducting unfair trade practices, citing a government statement.

Ryanair was not immediately available to comment on Friday.

On Wednesday 8 June, Ryanair called on Hungarian Prime Minister Viktor Orban's government to scrap what it called a "misguided" new tax levied on departing passengers as part of efforts to rein in a rise in the budget deficit.

The Minister for Economic Development, Marton Nagy, told MTI the government would do all in its power to prevent the cost of windfall taxes from being passed on to consumers, and rejected Ryanair's move in the strongest terms.

"It is especially adverse that Ryanair has started this practice with regard to tickets sold earlier," he said.

"Investigations will be conducted in each and every case," MTI cited Nagy's statement as saying.

Hungary announced new windfall taxes worth 800 billion forints on what it called "extra profits" earned by banks, energy companies, airlines and other firms last month, hitting Budapest stocks and rattling investors.

The measures are needed to finance Orban's costly policy of keeping a lid on household utility bills at a time of surging global energy prices as well as tax rebates and other measures, which helped Orban get re-elected in an April landslide.

The new levy on the airline industry involves a tax worth €10 to €25 on passengers departing Hungary from July.

Ryanair has said that the "unjustified tax" on the airline sector would be damaging for Hungarian tourism and the economy.

Ryanair's Spanish Cabin Staff To Strike On Six Days, Union Says

The above news was followed by news that low cost airline Ryanair's RYA.I Spanish cabin staff will go on strike on six days in late June and early July, its main unions said on Monday 13 June.

The staff will walk out on June 24, 25, 26 and 30 and on July 1 and 2, as they are unhappy with working conditions and pay, USO union said.

"We have to resume mobilisation so that the reality of our situation is known and Ryanair is forced to abide by basic labour laws," said Lidia Arasanz, the general secretary of USO's Ryanair section, in a statement.

Staff of Dublin-based Ryanair, the largest airline in Europe in terms of passenger numbers, have walked out in other European countries such as Belgium and Italy.

With most COVID-related travel restrictions lifted in many countries in recent months, demand for summer travel has bounced back, leaving airlines and airport operators struggling to hire staff fast enough to handle the flow of passengers and offer them attractive working conditions.

News by Reuters, edited by Hospitality Ireland. Click subscribe to sign up for the Hospitality Ireland print edition.

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