Miles Brignall on how Ryanair fell foul of the OFT

Miles Brignall on how Ryanair fell foul of the OFT

A consumer watchdog this week ordered Ryanair to change its contract terms after deciding the airline was unfairly turning down claims for lost or damaged luggage. The Office of Fair Trading (OFT) has also told the company to make its passengers better aware of their rights in the event of delay or cancellation.

Until now, Ryanair's terms and conditions excluded damage to non-standard objects such as pushchairs, sporting equipment and musical instruments carried in the holds of its planes. It effectively said they were carried at the customer's own risk.

Following an investigation, the OFT found that the company's stance had contravened the Montreal Convention governing baggage liabilities. This week it ordered the airline to change its terms and conditions and to pay future claims.

The airline has also been told it must make it easier for passengers to bring these claims. Ryanair had insisted that all items of luggage that went missing were reported within 21 days of them having been lost for three weeks. Again, the OFT ruled that this contravened the convention, as did the airline's requirement that passengers fill in one of its "Property Irregularity Reports".

Ray Hall at the watchdog says: "The OFT's action has secured improvements to Ryanair's terms that will benefit passengers. We expect other airlines using similar terms to stop doing so immediately. Continued use of such terms will be considered a breach of the Unfair Terms in.....continued below

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Consumer Contracts Regulations 1999."

Meanwhile, the OFT has also looked at the fact that Ryanair's conditions failed to take into account EU Regulation 261/2004. This requires airlines to provide care and assistance, and, in some cases, compensation, to consumers if their flights are delayed or cancelled.

Ryanair - whose colourful chief executive is Michael O'Leary - has now amended these terms and included a copy of the notice setting out these rights on its website. However, it remains to be seen whether it will be paying more claims in the future.

Passengers are entitled to meal vouchers and hotel accommodation in the event of a long delay. They are also entitled to a minimum of €250 (£168) compensation if the airline cancels the flight at the last moment - unless it is for an unforeseeable safety-related issue. Guardian Money has received hundreds of complaints from readers who were denied compensation by airlines following a cancellation.

Simon Evans of the Air Transport Users Council, who worked with the OFT on this ruling, says the other airlines' policies in these area are now being scrutinised.

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