This is why Ryanair received a huge fine from the Hungarian government

It turned out why Ryanair was fined. Contrary to previous rumours, Ryanair has not been fined by Hungary’s consumer protection agency for passing on the departure tax. This is because the airline claimed to be subject to the new special tax, according to a ruling by the Consumer Protection Department of the Budapest Government Office.

Special tax for Ryanair

The Hungarian government decided in early June to introduce new taxes in seven different sectors. The ruling Fidesz party called it an additional profit tax. One of the seven sectors was air transport. Under the new tax, airlines had to pay HUF 3,900 (€9.88) per ticket for travel after July 1. Airlines had to pay this amount even if the ticket had been sold before the tax was introduced.

Ryanair called the tax nonsense. He then conveyed the amount to passengers in an official statement. Airline CEO Michael O’Leary and the entire airline have been locked in a communications war with the Hungarian government. O’Leary called Economic Development Minister Márton Nagy an idiot, a fool and a madman. Justice Minister Judit Varga said “Ryanair’s attitude will have consequences”.

The Metropolitan Government Office has launched consumer protection proceedings against Ryanair. Varga announced on Monday that the investigation had resulted in a fine of 300 million HUF (€765,000) imposed on Ryanair. In response, Ryanair is appealing what it says is an unfounded fine.

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Back to the fine

My Late Machine wrote that the basis for the fine was not that the airline passed the tax on to its passengers. According to the decision of the Consumer Protection Department of the Metropolitan Government Office, the airline was fined for claiming to be subject to the new special tax, reports kesettagepem.hu.

Ryanair was found to have misled consumers. Not only in its public communications, but also in its Terms and Conditions, the company has passed on the tax to passengers on this basis. According to Ryanair, the transfer itself was not contested by the government office, writes Telex.hu.

“The Company’s business practice of including the amount of departure tax in its rates is not unfair: it is not a blacklisting practice, nor a deceptive or aggressive business practice. “