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Gov’t Investigating Ryanair for Passing on Extra-Profit Tax to its Customers

“The government finds it unacceptable and most emphatically rejects Ryanair passing on the special extra-profit tax on airlines to its passengers,” responded Minister of Economic Development Márton Nagy to a letter from the airline on Thursday. Ryanair has decided to charge passengers an extra 3,900 Ft. (US $10.31) to cover the “extra-profit” tax imposed on airlines after it called on the Hungarian government to withdraw it.

“The government has made it clear to all concerned that it is constantly monitoring market developments, and will do its utmost to prevent the special taxes from being passed on to the public,” according to the statement by Márton Nagy sent to MTI.

The statement also says that the government gave advance notice that it would conduct a thorough investigation in every such instance, and take action against companies engaging in harmful practices. The statement added that it was “particularly regrettable that Ryanair has started this practice even for tickets already sold.”

Márton Nagy has launched a consumer protection investigation to determine whether the airline is violating consumer protection laws by engaging in unfair commercial practices. The Minister wants government agencies to thoroughly investigate and, where possible, prevent the airline from engaging in unfair practices.

A few minutes after this announcement, the Budapest metropolitan government office announced an immediate consumer protection investigation against Ryanair.

The minister also suggested that authorities examine Ryanair’s pricing practices to see if they meet current European standards and expectations, particularly since, according to Nagy, many European countries have had such a tax on airlines in place for a long time.

The government expects the extra-profit special taxes to be paid by all companies, not to be passed on to residents, because the price of the war should not be paid by Hungarian families.

-the Minister of Economic Development said. [Telex]

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