92002E3212

WRITTEN QUESTION E-3212/02

by Paul Rübig (PPE-DE) to the Commission

(12 November 2002)

Subject: Airline price transparency

Airlines often run flyer, poster or other campaigns advertising particularly attractive fares. It is not usually made clear to the consumer that these offers are subject to extremely restrictive conditions and that the advertised fares only represent the basic price and not the final fare. This means that people are attracted by the offer of a particularly low fare, which later turns out to have various airport or other taxes added to it, to be valid only for a certain period or on particular days or to apply only to a certain length of stay.

In addition, different airlines which have confusingly merged into one supplier make one price offer in a single advertisement, which in fact applies to only one of the corporation's airlines.

Consumers, particularly those who do not fly frequently, are helpless in the face of this price jungle, and even frequent flyers often take some time to find their way through the medley of fares on offer.

What is the Commission's view of the problem of inadequate price labelling by airlines, and does it consider it necessary to take measures to ensure greater transparency?

Answer given by Mrs de Palacio on behalf of the Commission

(18 December 2002)

Under Council Regulation (EEC) No 2409/92 of 23 July 1992, on fares and rates to air services(1) air carriers are free to set fares themselves. This has encouraged the development of low fares and of promotional offers, which generally benefit consumers even if they can be complex sometimes.

Advertising that deceives consumers is another matter. Council Directive 84/450/EEC of 10 September 1984 relating to the approximation of the laws, regulations and administrative provisions of the Member States concerning misleading advertising(2) obliges Member States effectively to control misleading advertising and to confer the necessary powers on the courts and the administrative bodies. It is their responsibility to implement the national laws transposing the Directive, although the Commission, of course, can launch infringement procedures if it considers that a Member State has failed to fulfil its obligations. In addition, the Commission is considering a legislative proposal on fair commercial practices, designed to tackle a number of consumers' grievances not covered by present legislation.

(1) OJ L 240, 24.8.1992.

(2) OJ L 250, 19.9.1984.