European airlines will have to advertise tickets at full price to avoid landing customers with a slew of hidden charges, according to new rules adopted by the European Parliament on Wednesday.
The ruling, which needs approval from EU states before it comes into force, revises the bloc's rules on airlines to boost competition by making it easier for travelers to compare prices before booking a flight.
The move is the latest measure from the bloc to become more consumer-friendly. In May it introduced new rules to slash the cost of using mobile phones abroad.
EU transport ministers are expected to seek a common position later this year so that final agreement can be reached in the first half of 2008.
"I don't see any indication (from EU states) against our proposals. It seems to me there is no major obstacles to find some compromise," said Arunas Degutis, the liberal lawmaker who is steering the package through parliament.
The air fare rules are seen especially aimed at low-cost carriers whose advertised fares often turn out much higher once taxes and other charges are included.
Fares will have to include all applicable taxes, non-avoidable charges or duties, fees and other costs levied by the airline or airport.
Where airport or on-board security costs are included in a ticket, those costs must be shown separately on the ticket or otherwise indicated to the passenger.
Also as part of the revision package, airlines will have to show they have enough insurance cover in order to get an operating license.
The proposal would also give the European Commission authority to revoke or suspend airlines' licenses if they do not follow EU rules on safety or financial standards, for example.
This is in case a member state authority, for political reasons, failed to revoke a carrier's license despite potential safety concerns.
The new rules will also require more frequent submission of financial information such as business plans from start-up airlines to reduce bankruptcies among new carriers.