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Ryanair shares dive as criticism of flight cancellations intensifies Ryanair ordered to tell passengers of options after flights cancelled
(about 1 hour later)
Criticism of Ryanair’s treatment of passengers affected by flight cancellations has intensified, denting the airline’s stock market value as it came under attack from Nicola Sturgeon and the head of the UK aviation regulator. Ryanair has been ordered to tell hundreds of thousands of passengers how it will provide alternatives to cancelled flights by 5pm on Friday.
The Civil Aviation Authority launched enforcement action on Thursday against the Dublin-based carrier, but it could avoid action from Ireland’s Commission for Aviation Regulation (CAR) due to differing interpretations of EU law governing passengers’ rights. As criticism of the Ryanair’s treatment of passengers affected by flight cancellations intensified, the aviation regulator told the Irish airline to explain how it will reroute passengers and email all those affected by Wednesday to explain their options.
Sturgeon, the Scottish first minister, lamented Ryanair’s “deeply regrettable” decision to cancel scores of flights from Scotland, and backed the CAA’s legal warnings to the airline over misleading people about their rights. In a strongly worded letter, the CAA’s chief executive, Andrew Haines, told Ryanair: “This issue is urgent as passengers may already have been disadvantaged by taking a decision based on misleading information provided by Ryanair.”
Ryanair issued a statement in response saying it had reminded its customer service agent on Wednesday “of the refund and re-accommodation entitlements of customers in cases of flight cancellations”.
The CAA had said earlier that Ryanair had wrongly claimed it was not obliged to arrange new flights for passengers on rival airlines, and in his letter Haines spelt out that emails previously sent to passengers had “omitted material information” about their rights.
Ryanair came under scrutiny after announcing earlier this week that it would scrap 18,000 flights on 34 routes between November 2017 and March 2018, affecting nearly 400,000 passengers, a week after announcing a first wave of cancellations.
Haines called on Ryanair to issue a press release explaining how it will reroute passengers, including a commitment to assist passengers who had already chosen an option that was not suitable to them as a result of being misled by the airline, and a promise to reimburse those affected.
The latest intervention by the CAA - which has launched enforcement action against the Dublin-based carrier - came after criticism from Nicola Sturgeon, the Scottish first minister. She lamented Ryanair’s “deeply regrettable” decision to cancel scores of flights from Scotland, and backed the CAA’s legal warnings to the airline over misleading passengers.
“I have serious concerns about the decisions taken by Ryanair in the past couple of days. These will cause disruption to many passengers travelling to and from Scotland to London, and indeed to other destinations in Europe,” she told MSPs.“I have serious concerns about the decisions taken by Ryanair in the past couple of days. These will cause disruption to many passengers travelling to and from Scotland to London, and indeed to other destinations in Europe,” she told MSPs.
“We fully support the CAA’s launch of enforcement action because it is vital at the time of disruption that airlines provide full and accurate information about the rights that they [passengers] have.”“We fully support the CAA’s launch of enforcement action because it is vital at the time of disruption that airlines provide full and accurate information about the rights that they [passengers] have.”
The Scottish transport minister, Humza Yousaf, is writing to the airline to protest the cancellations, she said. The Scottish transport minister, Humza Yousaf, was writing to the airline to protest against the cancellations, she said.
The CAA chief executive, Andrew Haines, had earlier told the BBC he doubted that the dispute would end up in court, but said it was “unacceptable” that Ryanair was disregarding the law and customers’ rights. Haines had earlier told the BBC he doubted that the dispute would end up in court, but said it was unacceptable that Ryanair was disregarding the law and customers’ rights.
“These are simple things to fix and they’re choosing not to fix them,” he said. “People shouldn’t have to choose between low fares and legal rights.”“These are simple things to fix and they’re choosing not to fix them,” he said. “People shouldn’t have to choose between low fares and legal rights.”
Ryanair’s share price had lost little ground until Thursday, but fell by more than 4% to €16.41 (£14.39), leaving its stock market value nearly £1.7bn lower than before the cancellations. In his letter, sent to Ryanair’s chief legal officer, Juliusz Komorek, Haines said there would be a conference call with the airline on Monday to discuss why it was taking so long to respond to the regulator’s requests.
In a brief statement, Ryanair said it would cooperate with the CAA. “We are meeting with the CAA and will comply fully with whatever requirements they ask us to,” the airline said. Ryanair’s share price had lost little ground until Thursday, when it fell by more than 4% to €16.41 (£14.39), leaving its stock market value nearly £1.7bn lower than before the cancellations.
The CAA said Ryanair had wrongly claimed that it was not obliged to arrange new flights for passengers on rival airlines, following two waves of flight cancellations affecting more than 700,000 people. In a brief statement issued before the CAA letter, Ryanair said it would cooperate with the regulator: “We are meeting with the CAA and will comply fully with whatever requirements they ask us to.”
The regulator’s intervention means the company is now fending off the displeasure of investors, regulators, politicians, passengers, pilots and cabin crew, despite its chief executive, Michael O’Leary, attempting to bring the rostering problem under control. The CAA said Ryanair had wrongly claimed it was not obliged to arrange new flights for passengers on rival airlines, following two waves of flight cancellations affecting more than 700,000 people.
According to EU regulations, airlines that cancel flights are obliged to offer a refund or reroute passengers under “comparable transport conditions”. Guidelines state that this should be as soon as possible, even if it has to be with another airline. The CAA’s intervention means the company is now fending off the displeasure of investors, regulators, politicians, passengers, pilots and cabin crew, despite its chief executive, Michael O’Leary, attempting to bring the rostering problem under control.
While the CAA said Ryanair had failed to inform passengers of these rights, CAR said it was unsure as to whether it could proceed with enforcement action. According to EU regulations, airlines that cancel flights are obliged to offer a refund or reroute passengers under “comparable transport conditions”. Guidelines state that this should be done as soon as possible, even if it has to be with another airline.
Ryanair came under scrutiny after announcing earlier this week that it would scrap 18,000 flights on 34 routes between November 2017 and March 2018, affecting nearly 400,000 passengers, a week after announcing a first wave of cancellations.
Affected services include routes from Edinburgh and Glasgow to London Stansted, and from the Scottish airports to Poland, Spain and Germany.Affected services include routes from Edinburgh and Glasgow to London Stansted, and from the Scottish airports to Poland, Spain and Germany.
The disruption began the previous week, when Ryanair said it would scrap up to 50 flights a day until 31 October, citing a “mess-up” in how it schedules time off for pilots, affecting 315,000 customers. The disruption began the previous week, when Ryanair said it would scrap up to 50 flights a day until 31 October, citing a “mess-up” in how it schedules time off for pilots.
The airline said it has emailed affected customers to offer a refund or an alternative flight. Passengers will also receive a travel voucher for a £40 one-way or £80 return journey that can be used to book a Ryanair flight for travel between October 2017 and March 2018.The airline said it has emailed affected customers to offer a refund or an alternative flight. Passengers will also receive a travel voucher for a £40 one-way or £80 return journey that can be used to book a Ryanair flight for travel between October 2017 and March 2018.