Ryanairhas won a won a key court battle against a claims company that passengers turn to get compensation for delayed and cancelled flights.
The firm called Flightright encouraged flyers to use their services when taking any sort of action against the low cost airline. But now a court in Germanyhas ruled in favour of Ryanair and issued a series of rulings against Flightright. The court has legally prohibited Flightright from claiming that customers encounter "hurdles" when contacting the airline's customer service.
Experts said this ruling marks a significant point in the dispute between the Irish low-cost carrier and companies specialising in enforcing compensation claims under EU Regulation 261.
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Earlier this week the Hanseatic Higher Regional Court in the German city if Hamburg banned Flightright from telling passengers to ignore Ryanair entirely. Judges also ordered the company to admit it always puts a 14 percent “lawyer surcharge” on top of its advertised fee.
A huge £210,000 fine will hit every future breach of the ruling. Ryanair accused Flightright of misleading advertising and profiting from the misery of delayed travellers.
The airline says platforms like Flightright routinely take up to a whopping 40 percent of a €250 EU compensation payout meant for passengers. Ryanair’s marketing chief Dara Brady welcomed the verdict and told passengers to cut out greedy middlemen.
He said customers who go direct will receive 100 percent of their payout under EU Regulation 261.
He claimed Ryanair offered "a simple, transparent system that avoids rip-off fees". EUrules promise €250 for delays on flights up to 1,500 kilometres and a tasty €600 for longer flights delayed more than three hours.
The verdict piled onto a list of previous legal defeats suffered by Flightright. Claims companies are controversial because they cherry-pick “easy wins” they can cash in on. They collect hefty commissions for filing paperwork while posing as consumer champions.
Industry insiders say Ryanair is less complicated than many rivals when it comes to issuing refunds. Ryanair is using this to humiliate companies that portray it as hostile to customers.
Travellers who refuse to deal with airlines directly can use Germany’s free arbitration service, which claims 80 to 90 percent success without fees. The ruling exposes the claims-industry model as a profit hunt fuelled by delay payouts, not public service.
On Flightright’s website, it claimed: “No one enjoys flight delays, but it’s important to know that you have rights! If your flight began in the EU, or landed in the EU with a European airline, you could be eligible to claim up to £520, depending on flight distance and delay length, no matter the ticket cost.
“The only conditions are that the airline must be responsible for the cause of the delay, and you must have reached the final airport in your trip with a delay of at least three hours.
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