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Ryanair responds to EU directive regarding hidden charges

As we covered in one of our recent posts, Ryanair was looking at potential fines and penalties from the EU with regards to so-called hidden charges on the company's website. However, after a discussion with the UK Office of Fair Trading (OFT) Ryanair has today agreed to make its charging structure more transparent and easier to understand.

The issue recently came to a head after a flood of complaints to the Advertising Standards Authority (ASA) which were passed on to the OFT. It seems that there was, and continues to be, some confusion as to optional charges, with Ryanair said to have adopted a system of opt out rather than opt in - something which appears to be in breach of various EU regulations. It is interesting to see that the company has reacted positively and very quickly to the issue and looks set to present its overall package costs in a different manner.

This ruling could probably have come at a better time for the airline industry, and the budget airlines in particular, with business levels down and profitability under serious pressure. The fluctuating price of oil has also caused significant problems for the likes of Ryanair and EasyJet making it very difficult to plan ahead for the future.

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