Ryanair ditched by Hertz

It came out of the blue just before midday last Thursday (1 July).  A terse press release by Ryanair to the effect that the airline had been ditched by Hertz, one of the world’s largest car rental companies. See also AND FINALLY

Hertz said that, despite lengthy discussions regarding a contractual dispute, it has ended its car hire agreement with Ryanair.  The rental giant alleges Ryanair’s agreement with GDS distribution companies represents a breach of contract, a claim Ryanair disputes.  The word “decommissioned” was used in the press release.  Hertz have confirmed that all existing bookings will be honoured and customers will still be able to modify their bookings on the website.

Ryanair believes this termination is in breach of its long-term exclusive contract with Hertz, which was recently extended for a five-year period to 2020.

The dispute revolves around Ryanair’s agreement with GDS distribution companies.  Avis would clearly be a runner for the new contract.  Whilst Ryanair is a very large airline, its actual individual carryings are not published, most passengers flying more than once a year (often many times more) and is an entirely European operation.

The airline says it will now pursue Hertz for breach of contract and damages.  In the interim however Ryanair will be unable to offer its customers car hire services through the Ryanair.com website for a period of three months.    www.ryanair.com     www.hertz.com

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