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DEREK SCALLY in Berlin
RYANAIR HAS been forbidden from charging German customers a fee for using a credit or debit card to pay for flights.
Germany’s federal court of justice found yesterday that Ryanair placed consumers at a “disproportionate disadvantage” by offering no way to pay for flights without incurring a fee.
“By charging the fee is shifting in a one-sided manner on to customers the costs of fulfilling its own legal obligations ... without bringing any service in return,” said the court, a practice at odds with German law.
The case against Ryanair was brought by Germany’s leading consumer organisation. It complained about the fee, which ranges from €1.50 to €4 per flight and passenger.
By not accepting cash payments, it argued, Ryanair offered customers no opportunity to pay for flights without paying extra.
Lawyers for Ryanair argued that it passed on to customers the fee banks charge the airline for credit card payments, and that no fee was charged for using a Visa Electron card.
The court dismissed this argument yesterday, saying the airline must provide an “established” way of payment that does not require extra effort on the part of the consumer.
As most of Ryanair’s business is conducted online, the court permitted the airline to retain its no-cash payment policy.
The ruling is understood to be applicable to other low-cost airlines operating in Germany with a similar credit card fee.
The ruling came as the airline’s chief executive, Michael O’Leary, was in Germany to announce a €25 million investment in two maintenance hangers at Frankfurt-Hahn airport, near the western city of Koblenz.
Mr O’Leary said the investment would create 200 new jobs, increasing to 600 Ryanair’s workforce in the region.
The airline said in a statement that the investment would “replace those previously offered to the Irish Government earlier this year in the empty Hangar 6 at Dublin Airport”.
“While we are pleased to announce this new investment in Germany and Frankfurt-Hahn airport, I regret that the Irish Government stood idly by and did nothing to win these new jobs for Ireland,” said Mr O’Leary.
Ryanair banned from charging credit card fee in Germany - The Irish Times - Fri, May 21, 2010
RYANAIR HAS been forbidden from charging German customers a fee for using a credit or debit card to pay for flights.
Germany’s federal court of justice found yesterday that Ryanair placed consumers at a “disproportionate disadvantage” by offering no way to pay for flights without incurring a fee.
“By charging the fee is shifting in a one-sided manner on to customers the costs of fulfilling its own legal obligations ... without bringing any service in return,” said the court, a practice at odds with German law.
The case against Ryanair was brought by Germany’s leading consumer organisation. It complained about the fee, which ranges from €1.50 to €4 per flight and passenger.
By not accepting cash payments, it argued, Ryanair offered customers no opportunity to pay for flights without paying extra.
Lawyers for Ryanair argued that it passed on to customers the fee banks charge the airline for credit card payments, and that no fee was charged for using a Visa Electron card.
The court dismissed this argument yesterday, saying the airline must provide an “established” way of payment that does not require extra effort on the part of the consumer.
As most of Ryanair’s business is conducted online, the court permitted the airline to retain its no-cash payment policy.
The ruling is understood to be applicable to other low-cost airlines operating in Germany with a similar credit card fee.
The ruling came as the airline’s chief executive, Michael O’Leary, was in Germany to announce a €25 million investment in two maintenance hangers at Frankfurt-Hahn airport, near the western city of Koblenz.
Mr O’Leary said the investment would create 200 new jobs, increasing to 600 Ryanair’s workforce in the region.
The airline said in a statement that the investment would “replace those previously offered to the Irish Government earlier this year in the empty Hangar 6 at Dublin Airport”.
“While we are pleased to announce this new investment in Germany and Frankfurt-Hahn airport, I regret that the Irish Government stood idly by and did nothing to win these new jobs for Ireland,” said Mr O’Leary.
Ryanair banned from charging credit card fee in Germany - The Irish Times - Fri, May 21, 2010
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