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Ryanair loses credit card charge in German court case

Discussion in 'Current Affairs' started by wertyu, Jul 17, 2009.

  1. wertyu

    wertyu
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    Ryanair's practice of charging passengers extra for using credit and debit cards could be challenged following a court ruling in Germany.

    Telegraph Travel learnt this week that the no-frills airline lost a court case in Germany last month over the "handling charges" it imposes on customers booking online.

    The case, which has not been reported in Britain, came about following a complaint by the Federation of German Consumer Organisations over the imposition of an 8 (7) charge per person per return flight when payment is made by credit or debit card. In Britain the charge is 10 per person per return flight.

    Berlin's Superior Court of Justice, citing a European Union directive, deemed that the charge was inadmissible unless the airline also offered a charge-free method of payment.

    Ryanair says that passengers can pay without incurring the extra charge by using Visa Electron cards. The airline described the Berlin court ruling as crazy and said it would appeal.

    But the ruling could encourage legal action elsewhere. Kirsten Huppe, a legal policy officer at the Federation of German Consumer Organisations, said it was a sign for other courts that the issue should be reconsidered.

    Earlier this year Ryanair was referred by the Advertising Standards Authority (ASA) to the Office of Fair Trading (OFT) over the airline's unwillingness and apparent inability to comply with rules on misleading advertising over the past two years.

    The airline has been the subject of 15 ASA adjudications since December 2004, while six further complaints have been resolved informally. Ryanair was condemned as irresponsible in January for using a photograph of a model dressed as a schoolgirl to advertise its hottest fares.

    This week, following talks with OFT officials, Ryanair made several changes to its website, giving more prominence to information about the airline's optional charges, which are not included in its headline fares.

    The Dublin-based carrier currently charges 30 to check in one item of luggage, 10 per person to pay for a return flight using a debit or credit card, 60 to travel with sport or music equipment and 15 per kilo for excess baggage.

    Additional charges and booking fees are expected to earn the airline at least 650 million this year.

    There is no transparency with these credit card charges, said Bob Atkinson, spokesman for Travelsupermarket.com, the price comparison website. Airlines not only Ryanair must be profiteering. If not, they should clarify where the money is going.

    Mr Atkinson welcomed the changes made this week to Ryanair's website but said more needed to be done.

    Simon Evans, chief executive of the Air Transport Users Council, questioned whether using Visa Electron was really a viable alternative, even though the airline claims that nearly a third of flights are purchased using the card.

    Budget airlines' extra charges have been an issue for some time, said Mr Evans. It will be interesting to see whether this court case has an impact on Ryanair's practices in the UK.
     
  2. Rover 609

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    Read the 1st line and straight away thought bad news for us entropayers:( If they lose that 10e extra they'll probably just hump it on the standard fare.:(
     
  3. Anfield Old Boys

    Anfield Old Boys
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    + 1. or just get it back on bags or food.
     
  4. byrnetred

    byrnetred
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    i see IK has had an effect
     
  5. Dub13

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    With the amount of flights I have booked for this season already I am not surprised.
     
  6. Rover 609

    Rover 609
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    Ive about 50 so far,23 of them for CL fixtures that havent even been announced,10 league matches before crimbo,thats another 20 and a few premptives in the new year,Arsenal away,Wolves away and the sat and sun of the FA cup.So entropay alone has saved me e250 on these alone,an absolute Godsend,cheers Paul;);)
     
  7. Dub13

    Dub13
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    Lets hope it lasts.
     
  8. MrsPepe

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    why is it that ryanair are the only ones that give you the entropay option???
     
  9. Rover 609

    Rover 609
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    Aer Lingus do aswell.;)
     
  10. MrsPepe

    MrsPepe
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    do they??:eek: no way!!! well f*** it.
    Thanks Ronan, I do learn something every day
     

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