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Ryanair loses Icelandic ash compensation case.


Limerick Lad

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Nov 17, 2006
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Ryanair has lost it case before European Court of Justice appealing the payment of compensation to its passenger whose travel plans were disrupted by the closure of part of European airspace as a result of Iceland's volcanic eruption, it will be interesting to hear Michael O'Leary's comments.

Ryanair Loses Appeal Over Ash Cloud Disruption
 

Clanrickard

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Apr 25, 2008
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Ryanair has lost it case before European Court of Justice appealing the payment of compensation to its passenger whose travel plans were disrupted by the closure of part of European airspace as a result of Iceland's volcanic eruption, it will be interesting to hear Michael O'Leary's comments.

Ryanair Loses Appeal Over Ash Cloud Disruption
Could not have happened to a better company. :)
 

harshreality

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Oct 14, 2011
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This case has been smouldering away for ages, knew it would disappear in a puff of smoke though!
 

FrankSpeaks

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Apr 18, 2008
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The last paragraph is interesting, the court said it could include the price of compensation in the price of the tickets. I suppose the right way to do that is to put say €0.50 on each ticket and put it into a central fund for eventualities like this. Based on 2011 figures there were 777 million passengers carried in the air in 2011. This would work out at around €400 million per year to cover these eventualities. IF this figure is too much then the rate could be varied to take account of the costs.

 

seanmacc

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It will teach them a lesson in planning.

During the first ash crisis I was stranded in Chicago (Halfway from where I started from, I learned my flight to Dublin was cancelled on landing in Chicago). I was due to be flying with Aer Lingus. On presenting myself at the Aer Lingus check in desk I was informed of the problem and presented with a voucher for one of the local Holiday Inns which entitled myself and my family to stay there at a rate of $60 a night. I was re-booked then to fly 3 days later. When my flight was cancelled 3 days later again I was given a direct line to an Aer Lingus customer care agent based in the US as I could not rebook the flight online myself as one leg was used on a multi leg ticket. I eventually got back to Dublin 9 days later. I mailed my receipts and was reimbursed with a cheque within a week.

On my return to work in Dublin Port Irish airspace had closed again for a further 3 days. At this point Aer Lingus had sent several operations and planners down to the port to make contingency plans for busing passengers from Dublin Airport to UK airports where airspace may be open. They were also refunding UK bound passengers on the spot and advising them of ways to get to their destinations in the UK or the continent without flying thus potentially easing their potential expenses pay outs.

Ryanair have to start building relationships with other companies both hotel and transport companies where possible. It is likely in the next few years that a repeat eruption is likely and they are not going to get EU transport directives changed to suit them. Where Ryanair are incompetent at customer service on a day to day basis to save costs they must have a contingency plan to enact some for of emergency customer services department that can be effective in these sort of circumstances. It will save them money. The ash crisis exposed Ryanair and many other airlines as an office of bean counters and this decision and their experience should kick them into a different direction of thinking should this happen again.
 

Limerick Lad

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Ryanair should be questioning whoever decided to commence the case, extraordinary is extraordinary and the idea that someone would suggest that something could be so extraordinary as to be not extraordinary defies belief. One of Mr. O'Leary's solo runs perhaps?
 

44percent

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Ryanair judgement on ash cloud case

http://www.irishtimes.com/newspaper/breaking/2013/0131/breaking20.html

Ryanair has lost the case before the European Court of Justice over compensation for passengers delayed by the Icelandic ash cloud. What has drawn my attention to this is the statement in the above article that Ryanair may raise fares as a result. There never seems to be a sense that a company should reduce its profit taking in order to meet obligations like this. Is there a need for special taxation to rebalance punitive measures by an extremely profitable company against its customers or some other mechanism to ensure Ryanair is restrained from its fare rise? Or is the "market" capable of holding it in check?
 

darkhorse

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Dec 12, 2005
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Of course fares will have to rise...
Now the airlines have to include an element of travel insurance in their fares
The additional cost will all have to be passed on to the consumer - despite some dimwits who think its a 'victory for the consumer'
 
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Stupid decision because a Govt decision to shut down airspace should not be foisted onto private business costs.

There was no risk to air passengers but airlines were refused permission to use air space.

This only changed when Willie Walsh of BA flew planes across the Atlantic and gave Govts a choice, open air space or watch passenger planes fall out of the sky. Govts quickly opened up airspace.

Not unsurprisingly most airline bosses both knew and supported what Willie Walsh was doing but couldn't move anything within Europe.

Airspace was shut down based on flawed data.

The issue is that if a Govt shuts down your business, should you then be responsible for compensating customers while Insurance companies and Govts wash their hands of it.
 
D

Deleted member 17573

Stupid decision because a Govt decision to shut down airspace should not be foisted onto private business costs.

There was no risk to air passengers but airlines were refused permission to use air space.

This only changed when Willie Walsh of BA flew planes across the Atlantic and gave Govts a choice, open air space or watch passenger planes fall out of the sky. Govts quickly opened up airspace.

Not unsurprisingly most airline bosses both knew and supported what Willie Walsh was doing but couldn't move anything within Europe.

Airspace was shut down based on flawed data.

The issue is that if a Govt shuts down your business, should you then be responsible for compensating customers while Insurance companies and Govts wash their hands of it.
Ryanair took the decision themselves to ground their fleet.

Ryanair halts flights till Monday - News & Advice - Travel - The Independent
 
D

Deleted member 17573

There was no risk to air passengers but airlines were refused permission to use air space.

This only changed when Willie Walsh of BA flew planes across the Atlantic and gave Govts a choice, open air space or watch passenger planes fall out of the sky.
What exactly does this mean?
 

Mackers

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Jan 24, 2011
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Great news. But personally I would walk before I'd go on Ryanair.
 

Nebuchadnezzar

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Mar 15, 2011
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Stupid decision because a Govt decision to shut down airspace should not be foisted onto private business costs.

There was no risk to air passengers but airlines were refused permission to use air space.

This only changed when Willie Walsh of BA flew planes across the Atlantic and gave Govts a choice, open air space or watch passenger planes fall out of the sky. Govts quickly opened up airspace.

Not unsurprisingly most airline bosses both knew and supported what Willie Walsh was doing but couldn't move anything within Europe.

Airspace was shut down based on flawed data.

The issue is that if a Govt shuts down your business, should you then be responsible for compensating customers while Insurance companies and Govts wash their hands of it.
I think that it is now generally accepted that the airspace shutdown was a vast over reaction. I presume that you jest when you say that Willie Walsh forced a rethink by playing chicken with passenger laden aircraft. Those aircraft had plenty of fuel and plenty of options if the airspace had remained shut.

The particular issue here is not about the Govt compensating the likes of Ryanair - its about Ryanair living up to it's duty of care towards its passengers something that it has always struggled to understand.
 
Joined
Aug 6, 2007
Messages
22,911
I think that it is now generally accepted that the airspace shutdown was a vast over reaction. I presume that you jest when you say that Willie Walsh forced a rethink by playing chicken with passenger laden aircraft. Those aircraft had plenty of fuel and plenty of options if the airspace had remained shut.

The particular issue here is not about the Govt compensating the likes of Ryanair - its about Ryanair living up to it's duty of care towards its passengers something that it has always struggled to understand.
WW played chicken and was fully prepared to go to UK airspace which required UK Govt and CAA to back down very quickly.

The issue is whether Govts can impose restrictions on business then demand that business compensate users of said business because Govts impose the restrictions on them in the 1st place and then the Govts claim its the businesses fault.
 

Harmonica

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Jul 2, 2009
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5,827
I think Ryanair wanted a judgement on this more for issues likes airport strikes. It does seem unfair that airlines have to bare the cost of decisions outside their control. It probably doesn't matter anyway as the passengers will have to pay in advance as part of their ticket price - some airline will call it a levy & others will bundle it into their prices.
 
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