15 October 2008

Payment row breaks out between Ryanair and Expedia

Expedia has hit back at public claims by Ryanair that it has failed to honour payments.

Ryanair issued a statement yesterday saying it was serving notice to the online agency because it had breached a number of its payment obligations.

It said Expedia had been given exclusive rights to sell hotel accommodations on the airlineââ¬â¢s website, and although the deal went well in the early stages, in recent months Expedia has breached its contract.

ââ¬ÅâœRegrettably, Expedia has failed to honour key obligations under this agreement, in particular its payment terms, and our attempts in recent months to get Expedia to resolve these breaches, have failed so we now have no alternative but to give them notice,ââ¬~ said the Ryanair statement.

It said it was giving Expedia 30 days to correct the situation.

Responding this morning, Expedia said it was disappointed with Ryanairââ¬â¢s statement.

CEO Dara Khosrowshahi said: "We believe that Expedia has complied in every respect with the terms of our agreement with Ryanair, including all payment terms, and that Ryanair has failed to honour its obligations under that agreement.

ââ¬ÅâœWe have a long history of solid relationships with our partners and take our contractual obligations seriously; we expect our partners to do the same. We strongly believe that Ryanair does not have the right to terminate our agreement."

Expedia said the matters in dispute are the subject of legal proceedings that have been pending since May 2008 before the Commercial Court in London.

On Friday, the Court gave directions to the parties for an orderly resolution of this dispute with a view to a trial of the claim and counterclaim in November 2009 if the matter is not settled before then.

ââ¬ÅâœExpedia will continue to vigorously assert its position in the pending legal proceedings and pursue its claims against Ryanair,ââ¬~ said Expedia's statement.


By Bev Fearis

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• Who has more credibility? Expedia!
  
  

  Although I have no empathy for either party in this dispute, given Expedia's track record with operating numberous web sites and 'white wrapper' feeds to other web sites I suspect Expedia is more than likely correct. O'Leary's track record of renaming destinations, losing claims against the EU, overcharging passengers, improper denied boarding, etc. gives him minimal credibility. But he loves publicity ... any publicity!

  By Jon Hewson, Monday, October 20, 2008