Ryanair is bracing for a bruising. The Competition and Markets Authority has launched an investigation into the budget carrier's policy of charging parents to sit next to their children. It is a practice that has infuriated families for years. And now, the watchdog has finally stepped in.
The CMA's probe centres on whether Ryanair's fees for allocated seating amount to an unfair commercial practice. Under consumer law, parents have a reasonable expectation to sit with their young children without paying extra. Ryanair, however, has long maintained that its model relies on ancillary revenue. The airline argues that it offers free random seating, and that paying for assigned seats is a choice.
But the CMA is not buying it. Sources inside the regulator indicate that the investigation was triggered by a surge in complaints. Families, they say, are being effectively coerced into paying. The fear is that many parents cannot risk being separated from their toddlers on a crowded flight. The regulator is now examining whether Ryanair's policy breaches the Consumer Protection from Unfair Trading Regulations.
This is not just a storm in a teacup. Downing Street has been watching closely. The Prime Minister, battered by a plunging net approval rating, is keen to champion the 'family-friendly' agenda. Any formal action against Ryanair would be a political gift. Labour sources tell me they are 'delighted' the watchdog is acting. But they want to know why it took so long.
For Ryanair, the timing could not be worse. The airline is already under fire for its carbon emissions record and for slashing routes. Michael O'Leary, the airline's chief executive, is known for his combative style. He will not go quietly. Expect a full-throated defence of the policy and an attack on the CMA as 'a tax on hardworking families' – the airline's frame will be that the regulator is punishing consumers with higher fares.
But the politics is treacherous. The Conservatives are trying to position themselves as champions of the consumer. Grant Shapps, the Transport Secretary, has previously called out airlines over seating fees. He faces a revolt from his own backbenches if he does not back the CMA. Meanwhile, Labour is eyeing a populist drive on consumer rights. The shadow consumer minister has already tabled a series of sharp questions.
In the lobby, the betting is that Ryanair will settle. A full-blown legal battle would be expensive and damaging. But O'Leary is a gambler. He may calculate that a fight boosts his brand in a low-cost sector where notoriety is often an asset. Watch for leaks from the airline's PR machine. They will try to paint the investigation as a stitch-up by the established carriers.
For now, the CMA has given Ryanair a deadline to respond. The airline must show cause why the policy should not be deemed unfair. If it fails, the regulator can issue an enforcement order, fine the company, or even seek a court injunction. That would be a first for the aviation sector.
The broader question is whether this is the beginning of a crackdown on ancillary fees. Carriers like Wizz Air and easyJet will be watching nervously. But Ryanair is the biggest target. Its business model depends on squeezing revenue from add-ons. The CMA knows this. A ruling against Ryanair would send shockwaves through the industry.
Inside the Treasury, officials are cautious. They fear that heavy-handed regulation could drive up fares generally. But the political calculus is clear: no minister wants to be seen defending a company that charges parents to sit with their children. Expect a quiet word from Number 10 to the CMA chair: proceed, but watch the optics.
For families, the immediate relief is some way off. The investigation will take months. But the message is already sent. The free-for-all on add-on fees is under scrutiny. This is a story that has legs. And it will run and run.
