Ryanair will deal with individuals not claims agencies

By | Category: Travel news

Ryanair plane ascendingThe High Court has decided that Ryanair was allowed to pay individuals claiming compensation for delayed or cancelled flights directly instead of paying companies and organisations making claims.

The history behind the case is that Ryanair says that its compensation system is easy to follow and where compensation is payable it will only deal with the individuals concerned.

One of the leading claims companies, Bott & Co disputed this and took the airline to court saying that Ryanair should pay Bott in the event that the claimants did not pay Bott the monies that it says it is entitled to.

Bott says that only 70% of Ryanair’s clients paid their fees, so by October 2016 it was already owed £30,000, a figure which is probably substantially by now.

Judge Murray, said Ryanair ‘has established a straightforward and easy to use process for its passengers to make their flight delay compensation claims, either online or by correspondence, without the assistance of a third party’. More interestingly than this was the judge’s view that “Bott are, in effect, simply a claims handling agent in relation to the vast majority of flight delay compensation claims they make.Their automated system is specifically designed to ensure that that is the case. Their business model depends on their taking a percentage, by way of fees, of aggregate compensation due in relation to a high volume of straightforward, undisputed statutory compensation claims.”

Needless to say, Ryanair are delighted with the outcome.  Kenny Jacobs, the Commercial Director of the airline says on the company website, “This will help prevent “claims chaser” firms like Bott & Co, Fairplane, Hayward Baker, Sky Legal, Flightright, and Flight Heroes, deliberately and needlessly dragging consumers through the courts so they can grab more than 40% of customers’ compensation, for providing no useful service.”

Claims companies whether they be firms of solicitors or claims agents traditionally take about 25% + VAT of the sums that they win. The EU website makes it easy to complain. Does this mean that the number of claims agents will decline as people may be less inclined to use them?

Ryanair says that it pays genuine claims within ten days.

Bott & Co haven’t yet said whether they will appeal this decision.

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