Milan Court Backs Ryanair in Legal Battle Against Online Travel Agents

The Milan Court of Appeal has ruled in favor of Ryanair (FR, Dublin International), supporting the airline’s exclusive online distribution model against claims from online travel agents (OTAs) Lastminute and Viaggiare. The OTAs had argued that Ryanair’s direct ticket sales approach constituted an abuse of a dominant position. However, the court’s decision, delivered earlier this week, highlighted the consumer benefits of Ryanair’s strategy, particularly in terms of reducing airfares.

Ryanair’s Dara Brady welcomed the ruling, emphasizing the pro-consumer nature of the airline’s distribution model. Brady criticized OTAs for their practices, including the use of screenscrapers, fake accounts, and unauthorized bookings, which violate Ryanair’s terms of use.

The Milan Court found that Ryanair’s encouragement for customers to buy tickets directly from the airline helps in keeping operational costs low and eliminates the additional costs tied to ticket sales intermediation. According to the judge, intermediary third parties, such as OTAs, would otherwise increase airfares. The ruling acknowledged that Ryanair’s direct sales channel not only potentially lowers fares for consumers but also facilitates easier communication between the airline and its passengers. Contrary to the OTAs’ claims, the court determined that Ryanair’s ticket selling practices do not disadvantage consumers.

Ryanair has expressed its satisfaction with the court’s verdict, viewing it as a validation of its efforts to protect customers from being overcharged by OTAs. Brady reiterated Ryanair’s opposition to OTAs misrepresenting its flights and exploiting consumers. However, he also highlighted Ryanair’s openness to collaborate with any OTA that commits to fair pricing and transparency, as demonstrated by recent agreements with Love Holidays and Kiwi, marking a significant step towards consumer protection in the airline industry.