On the Beach wins £2m in court battle with Ryanair and pursues costs

Manchester-based holidays group, On the Beach, has won £2m in a court case with budget carrier Ryanair, and will be seeking payment of its court costs.

It has also called for regulators to scrutinise “certain low-cost airlines” more rigorously.

The business took action against Ryanair regarding refunds to its customers during the pandemic, when the travel industry was severely impacted by restrictions and lockdowns.

In a Stock Exchange announcement this afternoon (October 31) the firm provided an update that the High Court of Justice found in its favour in its application for summary judgment against Ryanair for refunds paid to customers by On the Beach following flights which were cancelled or subject to a major change during the pandemic.

The case was launched in October 2021.

The Court found that Ryanair had no real prospect of successfully defending the claims that it was obliged to refund the monies to On the Beach. As such, On the Beach has been awarded the sum of approximately £2m and will also be seeking its costs of the proceedings, it said.

Since the start of this claim, On the Beach said it has continued to provide its customers with cash refunds in circumstances where Ryanair has not yet provided a refund and will be taking steps to recover these sums.

On the Beach chief executive, Shaun Morton, said: ”We welcome the High Court’s decision to uphold our application for Ryanair to pay back what was owed.

“Today’s outcome sends an important message on how refunds should be handled and emphasises the industry’s responsibility to holidaymakers.

“On The Beach is committed to doing the right thing for its customers and provided full cash refunds for flights that were cancelled or subject to major changes during the pandemic, whether or not airlines had complied with their obligations.”

He added: “We continue to call on the CMA (Competition and Markets Authority) to review the anti-competitive behaviour by certain low-cost airlines, protecting consumer choice with fair access to flights and a code of conduct for airlines and travel agents.

“It has taken a protracted and expensive legal process to reach today’s outcome which could and should have been avoided. We urge the Department for Business and Trade to consider this in its current consultation on the Package Travel Regulations.”