Ryanair Compensation Loophole Will Reduce Compensation Claims

Ryanair compensation loophole

Ryanair Flight Delayed Or Cancelled Loophole Could Save The Airline Millions Of Pounds Each year

This week has been a good week for Ryanair following a High court judgement that ruled their compensation loophole was not breaking any laws. While it was a good result for Ryanair which could save them tens of millions of pounds, it was not good news for passengers who have suffered cancellations or delays.

Ryanair has a loophole in their terms and conditions which states if a passenger wants to make a claim they must make it direct. What this means is, a passenger who has suffered a delay or a cancellation cannot employ a third person such as a claims management company to act on their behalf.

The loophole was challenged by law firm Bott & Co, however, the ruling found the terms and conditions were fair and simple for passengers to use and therefore lawful.

A passenger who has suffered due to a delay or a flight cancellation will now have to make a claim direct to Ryanair instead of hiring a law firm to act on their behalf. Travel experts have said this will result in passengers being put off from making a claim, which could save Ryanair millions of pounds each year.

Under European law known as EC261, if a flight has been cancelled or delayed then passengers from that flight can make a claim for compensation. Although the claims process has been made simple for people to follow, some law firms have warned the number of claims will now be reduced.

In2town Travel Magazine spoke to 100 Ryanair passengers and asked them if they suffered a delay or had a flight cancelled if they would make a claim. 90 of the 100 passengers said they would seek compensation. When asked how they would claim compensation 70 of the 90 passengers said they would use a claims management company. However, when explained about the ruling and explained they would now have to make the claim direct with Ryanair, 30 of the 70 passengers who would use a claims management company said they would not make a claim due to lack of understanding and confidence in the process.

Ryanair could be setting the future of how compensation claims are handled. Many travel experts believe other airlines could also put the clause in their terms and conditions to reduce the amount of compensation they pay out each year for delayed and cancelled flights.

 

By Timothy Ellis