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Ryanair faces Italian competition probe into carry-on bag fees

Ryanair faces a probe by Italy’s competition watchdog into a decision to charge passengers to take hand luggage on to aircraft.

Antitrust said hand luggage was “an essential element of transport” and should be included in the ticket price, the BBC reported.

Passengers will still be able to take a small personal bag into the cabin, as long as it fits under the seat in front, from November. But they will have to pay €9 (£8) to take on a 10kg (22lb) bag.

Antitrust said Ryanair’s new policy could amount to unfair commercial practice in that it distorts the final price of the ticket and does not allow a true comparison with other airlines’ prices.

Italian consumer associations had complained to Antitrust about the Ryanair decision.

“If its unfair commercial practice on hand luggage is confirmed, Ryanair… should reimburse all its customers who suffer unfair additional costs,” the association Codacons said, promising to take the matter to court if necessary.

The low cost carrier said last month that the policy was not aimed at making money but intended to “improve punctuality and reduce boarding gate delays”.

However, research by US travel consultancy IdeaWorks suggested the airline made $2.3 billion from charges for add-ons such as checked baggage and selected seats last year.

That meant almost a third of the airline’s profits came from ancillary revenue.

The Italian inquiry came as Ryanair faces widespread strikes by staff across Europe.

Ryanair chief marketing officer Kenny Jacobs said: “We look forward to co-operating with this Italian inquiry. All Ryanair customers are free to bring one piece of carry-on bag on board. But no airline customer has a right to unlimited carry-on bags. For safety reasons, most short haul aircraft cannot accommodate two carry-on bags for each customer.

“From November, half our customers will continue to bring two free bags on board and the other half will continue to travel with one free small bag, which has been increased by 40% in size, and can, if they so choose, check-in a second 10kg bag for a new lower fee of €8 – currently Ryanair’s lowest cost check bag is €25.

“All other airlines, including Alitalia, Easyjet and BA, restrict the volume of carry-on bags for safety reasons.

“We look forward to explaining these safety restrictions and generous carry-on bag policy to the Italian authority.”

Shareholders also delivered a blow to the airline after many declined to vote for the re-election of chairman at its agm.

David Bonderman was re-elected but only with 70.5% of shareholder’s support – a drop from last year’s meeting where he gained 89.1% (see separate story).

Aberdeen Standard Investments, which owns a 0.9% stake in Ryanair, said it wanted to see “clear progress” on the succession of Bonderman and senior independent director Kyran Mclaughlin by this time next year.

“The length of time both have been on the board suggests a lack of focus on board succession planning,” ASI said.

“Excessive tenure also calls into question an individual’s independence and objectivity and our engagement on governance matters suggests that the board is not listening carefully enough to shareholders’ views.”

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