Low-Cost airline model under threat as a court declares over 111 clauses illegal


  • 26-02-2025
  • Business
  • Canarian Weekly
  • Photo Credit: Wizz Air
Low-Cost airline model under threat as a court declares over 111 clauses illegal

The low-cost airline industry is facing increasing scrutiny, with legal challenges emerging across Europe. Following Spain’s recent multi-million-euro fines for “abusive practices”, including charging passengers for hand luggage and requiring additional payments to sit next to dependent companions, the Austrian Supreme Court has now dealt another significant blow.

The court has ruled that more than 111 clauses within the terms and conditions of Wizz Air are unlawful.

According to CH-Aviation, the Austrian Supreme Court determined that these clauses infringe upon consumer rights. Many of the disputed policies are common among budget airlines, including a €40 fee for airport check-in, a strict twelve-month redemption period for compensation vouchers, and obstacles preventing refunds for customers who booked their tickets through third-party vendors.

As a result of the ruling, Wizz Air is now required to retroactively refund all airport check-in fees charged since 2018. Additionally, expired vouchers must be replaced with new ones valid for a further five years from their date of issue.

While the ruling currently applies only to passengers residing in Austria, it sets a legal precedent that could be replicated in other countries, posing a significant challenge to the business model of low-cost airlines across Europe.

 

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