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easyJet CEO Kenton Jarvis has blasted a recent EU vote on enforcing free cabin baggage as “crazy European legislation,” warning that it would significantly drive up the cost of fares and spell the end of ultra-cheap flights. The European Parliament recently voted in favor of new passenger rights that would guarantee every air passenger one small piece of carry-on baggage and a personal item free of charge.
Budget carriers like easyJet make a huge amount of their revenues from ancillary fees, such as baggage add-ons, with easyJet raking in over $3.4 billion in ancillary revenue each year. Although the rule still needs confirmation by the European Council, the proposal is understandably being met with alarm by Europe’s low-cost airlines.
easyJet’s CEO Criticizes “Lunatic” EU Carry-On Proposal
Last week, members of the European Parliament voted overwhelmingly in favor of a revised European air passenger rights bill, which aims to secure stronger rights for air travelers. Along with maintaining compensation rights for delays of three hours or more, a landmark change on the table is to give every EU air passenger the right to a carry-on bag, along with their one personal item. This carry-on bag would have maximum combined dimensions of 100 centimeters and a maximum weight of seven kilograms, which is a typical allowance for a carry-on bag in the industry.
Should it come into force, the ruling would apply to all passengers flying in or out of an EU airport with an EU-based carrier, meaning it would impact the vast majority of easyJet’s network. Jarvis has criticized the proposal as being another example of “politicians completely not understanding their subject,” claiming that the added cost to airlines would “have to be passed on” to passengers in the form of higher fares. As reported in The Guardian, Jarvis said,
“There just isn’t the space in the cabin, so that’s another lunatic idea… I just can’t explain how stupid it would be, just crazy European legislation.”
Higher Fares And More Delays
Ancillary revenues are the main reason why easyJet can offer such low base fares, with the carrier typically making around $30 in ancillary fees per seat flown, which adds up to billions of dollars each year. Although the carrier has other add-ons for purchase, baggage fees are its biggest driver of ancillary revenue, so the subsequent shortfall would have to be covered by driving up base fare prices.
According to Jarvis, the move would also prove a logistical nightmare, as there “just isn’t the space in the cabin” to accommodate every passenger and their extra bags. Consequently, this would lead to far more instances of passenger bags needing to be checked into the hold, causing more frequent delays and having a further knock-on effect on easyJet’s network.
With its cabins only able to accommodate the bags of around two-thirds of passengers, the CEO said that the ruling could add up to 25% to the price of fares. It would also lead to many passengers having to wait around at the destination airport for their checked bags to be unloaded.
Budget Airlines Accused Of Misleading Passengers On Cabin Bag Prices
Passengers’ ability to take luggage onboard has been a hotly debated topic, including in the European Parliament.
How Expensive Are Cabin Bags?
Adding a cabin bag or checked bag to an itinerary with a low-cost carrier will typically significantly increase the overall cost of a booking, in some cases costing more than the fare itself. easyJet claims to offer extra cabin bags for as little as $8.20 (£5.99), although a recent probe by the UK’s Advertising Standards Authority found the airline to have misrepresented the typical cost of its bag fees.
Another investigation by consumer group Which? found that easyJet’s bag fees were typically five times higher than its stated lowest price. As per its findings, the average easyJet bag was priced at $41 (£30), and the lowest quoted fee for a large bag was $32 (£23.49). According to The Telegraph, the average easyJet fare is around $87 (£64), but the new EU ruling could drive this up to around $110 (£80).
