ABTA has accused Ryanair of being “sore losers” after
the airline finally lost its long-running legal battle with Newman Street for
unpaid commission on Passenger Service Charges.
The High Court ordered Ryanair to pay agents up to
£250,000 in commission, which includes 8% interest. Ryanair will also have to
pay £125,000 to ABTA, about 77% of its legal costs.
Despite the court’s decision, Ryanair sales and
marketing director Tim Jeans slammed ABTA for “racking up costs” during the
lengthy legal proceedings – which have dragged on for two years – and still
refuses to admit liability.
“We continue to deny liability but we are not going to
take the case to the House of Lords as it wouldn’t be a good use of our time or
resources. But that’s not an admission of guilt,” he said.
“ABTA wanted its day in court, and got it at
considerable cost to its members. Our view is that it is valid to separate the
taxes out as a non-commissionable item. We have a right to that view.”
Jeans continued: “This brings down the curtain finally
on our relationship with the UK travel agent. There are still many agents with
whom Ryanair trades, and 391 agents giving evidence is a very small minority.”
ABTA president Stephen Bath laughed off Ryanair’s stance.
“That’s the law. If the airline thinks it does not apply to them, that’s fine.
“Ryanair was liable to pay commission, but it is
famous for not paying – it doesn’t pay landing fees unless it has to.”
ABTA head of legal services Riccardo Nardi said: “It’s
a great result for travel agents. The problem is Ryanair appears to be a sore
loser, which is a shame.”
ABTA’s battle over PSC has been a lengthy one. In 1999
the High Court declared the separating of PSC from commission payments was
illegal. British Airways, Lufthansa and Virgin appealed against the court’s
decision but lost in November that year.
The windfall for agents came
in February last year, when 4,500 agents received a share of £14.5 million.