Loser Ryanair criticises ABTA court action

Monday, 17 Jun, 2002 0

ABTA has won its long-running battle with Ryanair to make the airline pay the money it owes agents in commission on PSC.

A High Court ruling on Friday means that the airline will have to pay over £200,000 in commission. ABTA has also been awarded legal costs amounting to £125,000. But according to Ryanair the case could have been settled at the end of last year – saving ABTA members £50,000 in legal fees.

The airline’s sales and marketing director Tim Jeans (left), claimed ABTA had needlessly wasted member’s money by refusing the airline’s offer of an out of court settlement. He claimed that the £125,000 payment will leave a £50,000 shortfall in ABTA’s legal costs due to the extra expenses incurred after that time.

Mr Jeans added that while ABTA had originally said it was pursuing the claim on behalf of 782 agents, Ryanair will only have to make payments to 390 agents.

And he told TravelMole: “The case has not helped ABTA’s relationship with key operators in the low fares market. It has hardened positions on both sides and marks the end of Ryanair’s relationship with the travel trade.”

The dispute follows a landmark ruling in November 2000 when ABTA won back £14 million in lost commission for agents. The High Court ruled that airlines should pay commission on PSC, which it agreed was not a tax as the carriers claimed.

Three airlines – British Airways, Virgin Atlantic and Lufthansa appealed – but this was also rejected in May last year. However despite this Ryanair stubbornly refused to pay up.

An ABTA spokesman said: “Ryanair dug their heels in so we had to go to court again once and for all. Why should they be the only airline to get away with it?”

However Mr Jeans told TravelMole: “Just because all the other airlines rolled over doesn’t mean we had to.”