Misleading air fares to be outlawed

Misleading air fares are set to become a thing of the past under far-reaching new European Union proposals.

Air travellers will be familiar with the adverts offering flights for 99 pence, which in reality cost about £16 because the advertised fare excludes taxes, fees and charges.

But under proposals from the European Commission this practice will be outlawed from December 2007, and the full fare will have to be made clear from the start.

The proposals will also ban price discrimination based on place of residence.

In the past airlines have charged different prices for the same flights on different country-specific websites, but under the new rules they will have to charge the same price for the same product across the EU.

The moves were largely welcomed by airlines.

Ulrich Schulte-Strathaus, general secretary of the Association of European Airlines (AEA), which represents flag-carriers such as British Airways, said: "As consumer-driven businesses, AEA airlines can only applaud moves to improve customer awareness of the product. The more consumers know about what they are buying, the more likely they are to make the right choice."

Ryanair chief executive Michael O'Leary questioned the reason for not implementing the proposal until December 2007, saying that while it was welcome, "one has to ask why European air passengers will have to wait 18 months until December 2007 for this commission to even implement its own proposals". XXX