ARC NEWS
EU challenges Spain over restrictions on cabin-bag fees
October 10, 2025
The European Commission has launched infringement proceedings against Spain over national legislation that restricts airlines from charging for cabin baggage, arguing that this breaches EU law on air services. In a formal notice sent to the Spanish government, the Commission argues that the nation's air navigation law conflicts with Regulation (EC) 1008/2008, which guarantees carriers the freedom to set fares. The Spanish law prohibits airlines from levying additional charges for hand luggage, regardless of size or weight, limiting their ability to differentiate between service tiers, in the Commission's view. Its move follows penalty decisions issued by Spanish authorities against five carriers that applied separate fees for supplementary cabin bags. The Commission contends that these decisions misinterpret a 2014 European Court of Justice (ECJ) ruling in case C-487/12. This clarified that hand baggage meeting reasonable criteria should be free whereas oversized items are subject to pricing freedom. Spain has two months to respond to the Commission's formal notice. If it fails to address the concerns raised, the case could escalate to a reasoned opinion – the next step before potential referral to the ECJ.


Delta downplays impact of US government shutdown on its business
October 10, 2025
The ongoing shutdown of the US federal government has so far not had a significant adverse effect on Delta Air Lines' sales or operations, the US major's president Glen Hauenstein has indicated. "While we are monitoring potential impacts from the US government shutdown, we have not seen a material effect to date," Hauenstein said on 9 October during an earnings call. The shutdown began on 1 October after the US House of Representatives failed to approve a bill providing continuing full-year appropriations for federal agencies. Hauenstein notes that during the past six weeks, Delta's "sales trends have accelerated across all geographies and in every advance purchase window". He estimates that the financial impact of the shutdown on Delta to be "less than a million dollars a day". Last year, the carrier generated $61.6 billion in revenue. Delta's business at Washington National airport was "off" even before 1 October, adds Hauenstein. During the earnings call, Delta chief executive Ed Bastian thanked "the essential aviation workers, the controllers, TSA officers, federal air marshals, and many others who are keeping our system safe and secure during the ongoing government shutdown", adding: "We're hopeful that Congress will act to reopen the government as soon as possible." At a press conference on 6 October, US transportation secretary Sean Duffy confirmed that air traffic control staff must report to work even if the federal government is unable to pay those workers.


​Brussels should be 'ashamed' of EU regulations: IATA's Walsh
October 09, 2025
IATA director general Willie Walsh has launched a scathing attack on European policymakers, declaring that they should be "embarrassed" and "ashamed" of a regulatory system that he argues is failing to meet its objectives. EU regulations regarding air traffic management and SAF consumption are, he complains, hampering airlines' ability to operate efficiently and compete globally, pushing up their costs and emissions. Speaking at the World Aviation Festival in Lisbon, Walsh cited the EU's flagship aviation SAF emissions policy, which came into effect on 1 January and stipulates that 2% of jet fuel uplifted in 2025 at EU airports must be SAF, a level set to increase gradually across the period to 2050. He contends that the policy has had the effect of pushing up prices for airlines while doing nothing to increase supply. Furthermore, he adds, it has enabled fuel suppliers to charge airlines even more than the extra cost of SAF, which is several times the price of conventional fuels already. Walsh says this in effect doubles the extra cost to airlines of purchasing SAF, and suggests that fuel suppliers are able to do this because they have a monopoly position. "Regulators in Europe should be embarrassed by what's happening," he says, attributing the problem to poor policy design. Several airlines have called for the mandate to be scrapped in favour of a US-style incentive scheme for SAF instead. Turning to air traffic control, Walsh is similarly unsparing in highlighting Europe's inability to protect overflights from strike action, which he says enables air traffic controllers in some countries, most notably France, to shut down connectivity across the continent. Walsh's remarks echo long-standing industry concerns about Europe's fragmented air traffic management system. He estimates that around 60% of delays stem from ATC issues, exacerbated by staffing shortages and strike action, particularly in France. "It's disgraceful that we are still debating these issues," he says. "[Regulators] really do need to get their act together." He believes the authorities need to place greater pressure on ATC providers to sharpen their organisations, arguing that the current system design enables them to simply pass on any extra costs to airlines, with the result that there is "no pressure on ANSPs [air navigation service providers] to improve their performance, and that's the frustrating thing". As for the EU261 compensation scheme, Walsh believes there is "no data" to back up claims that airlines are responsible for delays, which means carriers are effectively paying the bill for inefficiencies elsewhere in the system – mainly in ATC – that are not being addressed. "When a flight is delayed because of air traffic control," he says, "Europe is not seeing that as an ATC problem. They're seeing that as an airline problem. And that's just not right." Airlines, he observes, are spending more money on their own resilience, but he sees this as compensating for system inefficiencies that "should be addressed through a more efficient ATC environment". He adds: "If you're a regulator in Europe and you're seeing the waste caused by inefficient air traffic control, you should be ashamed."


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