Ryanair Holdings Plc is facing “enforcement action” by Britain’s regulator after the discount carrier rejected passenger compensation claims linked to flight disruption from strikes this summer.
The walkouts didn’t amount to extraordinary circumstances and Ryanair should therefore have compensated customers in line with European Commission regulations, the Civil Aviation Authority said in a statement, adding that it warned the carrier at the time that it wasn’t exempt. The regulator didn’t say what “enforcement” could entail.
Europe’s biggest discount carrier had to cancel hundreds of flights earlier this year after employees staged walkouts as part of a dispute over pay and working conditions. While passengers were able to switch to other services or get a refund, European Union rules specify further payments may also have to be made depending on the circumstances.
The CAA said Ryanair has terminated an agreement under which people could escalate claims to another body it oversees. “Passengers with an existing claim will now have to await the outcome of the CAA’s enforcement action,” the regulator said. Calls to Ryanair outside of normal business hours weren’t immediately returned.
Ryanair is no stranger to confrontation, paying almost $600,000 as recently as last month for the release of a
Boeing Co. jet seized by French authorities in Bordeaux in a dispute over state subsidies.