WeLuvIbiza
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Budget airline Ryanair has been accused of playing 'silly games' with customers by charging them for paying by credit or debit card.
John Fingleton, chief executive of the Office of Fair Trading, said the low- cost carrier was only within the 'narrow letter of the law' after it changed its system.
The Office of Fair Trading has attacked Ryanair over aspects of its charging policy
Ryanair now offers free payment only for users of the obscure MasterCard Prepaid card. It means that everyone paying for a Ryanair flight with a conventional credit or debit card is charged a £5 fee - adding £40 for a family of four on a return trip. The estimated cost to the airline of processing each payment is 30p.
The law says that if an airline offers at least one free payment method, it is allowed to advertise cheap fares that do not include extra credit card charges.
Ryanair CEO Michael O'Leary (left) and John Fingleton, OFT chief executive, who criticised the practice of adding charges to payments made with a specific type of bank card
Mr Fingleton said Ryanair, which already charges its customers to check in baggage, was using a 'childish' tactic.
He said: 'It's almost like taunting customers and pointing out, "Oh well, we know this is completely outside the spirit of the law, but we think it's within the narrow letter of the law".'
He said the OFT 'might or might not' pursue such behaviour, but added that public anger could prove to be more effective than regulatory action.
John Fingleton, chief executive of the Office of Fair Trading, said the low- cost carrier was only within the 'narrow letter of the law' after it changed its system.
The Office of Fair Trading has attacked Ryanair over aspects of its charging policy
Ryanair now offers free payment only for users of the obscure MasterCard Prepaid card. It means that everyone paying for a Ryanair flight with a conventional credit or debit card is charged a £5 fee - adding £40 for a family of four on a return trip. The estimated cost to the airline of processing each payment is 30p.
The law says that if an airline offers at least one free payment method, it is allowed to advertise cheap fares that do not include extra credit card charges.
Ryanair CEO Michael O'Leary (left) and John Fingleton, OFT chief executive, who criticised the practice of adding charges to payments made with a specific type of bank card
Mr Fingleton said Ryanair, which already charges its customers to check in baggage, was using a 'childish' tactic.
He said: 'It's almost like taunting customers and pointing out, "Oh well, we know this is completely outside the spirit of the law, but we think it's within the narrow letter of the law".'
Ryanair: How the charges add up (all are per person and per flight):
Mr Fingleton added: 'On some level it's quite puerile - it's almost childish. This is just playing silly games at the margins of it all.' - ONLINE CHECK-IN (not charged on some promotional fares) - £5
- CREDIT OR DEBIT CARD PAYMENT ('administration fee') - £5
- PRIORITY BOARDING FEE - £4
- CHECKED BAGGAGE - 1st bag, up to 15 kg £15, 2nd bag £35
- EXCESS BAGGAGE - £20 per kilo
- CHILD CAR SEAT/BOOSTER?TRAVEL COT - £10
- SPORTS EQUIPMENT/MUSICAL INSTRUMENT- £40
He said the OFT 'might or might not' pursue such behaviour, but added that public anger could prove to be more effective than regulatory action.