ABTA names and shames

Report by John Lavabre

ABTA has become embroiled in another feud with Ryanair as the association named the airlines that are refusing to pay commission on Passenger Service Charges.

The low-cost carrier is one of seven which collectively owe agents £500,000.

Along with Ryanair, which is thought to owe £300,000, Gill Airways, Air Namibia, CityJet and Egypt Air have also refused to pay agents.

Two others, Dutch-owned VLM and ScotAirways, have agreed to stump up their share.

ABTA president Stephen Bath was outraged that Ryanair had refused to pay.

“What’s so special about Ryanair?” asked Bath.

“It’s not paying up because it doesn’t want to. It thinks it’s above the law. We have already won the case with other airlines.

“Ryanair dropped travel agent commission, it sells cheaper flights on-line and it also banned agents from charging service fees. The airline could not be more agent unfriendly if it tried.”

If the airlines do not pay up, they will be taken to court to retrieve the money. In November 1999 the High Court ruled that separating PSC from commission payments was illegal and ordered airlines to compensate agents for lost revenue. The Court of Appeal agreed with this decision in May last year.

Ryanair was unavailable for comment as Travel Weekly went to press.