A Spanish court has rejected an appeal by the country's travel agency association (Asociación Corporativa de Agencias de Viajes Especializadas - ACAVE) against Ryanair (FR, Dublin International) in connection with criminal charges Spanish travel agents laid against the budget carrier in 2021 for tarnishing their reputation.
The Barcelona Appeal Court affirmed a court of first instance decision in April that rejected the ACAVE lawsuit against Ryanair.
According to a statement issued by the airline, the appeal court found that Ryanair's statements on online travel agents' (OTA) "damaging practices are true and supported by extensive documentary evidence". "Specifically, the courts found that it is standard practice for OTAs to overcharge customers by applying 'service charges and that some OTAs frustrate Ryanair's direct communications with customers and block refund payments by not providing Ryanair with the customer's correct details," the airline said.
In its 2021 lawsuit, ACAVE said Ryanair accused its members of obstructing Ryanair's refunds to customers or providing false information to clients on reservation payments. Ryanair said OTAs have no commercial agreements with Ryanair and are not authorised to sell its flights. It accused agents of selling its tickets through "screen scraping". This consists of an agent buying an online airline ticket on behalf of a client and charging a service fee.
Meanwhile, Reuters reports that Ryanair's parent, Ryanair Holdings, and Chief Executive Michael O'Leary reached a cash settlement of USD5 million with a pension fund on June 7 in the US District Court in Manhattan following mediation. In 2018, the Alabama-based City of Birmingham Firemen's and Policemen's Supplemental Pension System led a class action suit against Ryanair and O'Leary, claiming they had made false and misleading statements to shareholders regarding employment issues at the airline – allegations that were strenuously denied. After Ryanair recognised pilot unions in December 2017 to avert a strike, unionisation increased costs, resulting in lower profits at Ryanair, wiping out "millions" in shareholder value, they claimed. Cited, amongst others, was O'Leary's comment at Ryanair's 2017 annual general meeting that "hell would freeze over" before the Dublin-based carrier accepted unions.
Ryanair welcomed the settlement saying it was "in the interest of all shareholders."
