Ryanair claims Expedia breached payment agreements

Expedia has denied the claims made by Ryanair that it has failed to meet payment obligations outlined in their agreement.

Earlier this week, Ryanair issued a public statement indicating it was serving notice to the online travel company in regard to its failure to meet a number of payment obligations to the low-cost carrier.

The airline claims that Expedia was given the exclusive rights to sell hotel rooms on the Ryanair website, and although the agreement proceeded well in early days, there have been breaches of the contract by Expedia in the last few months.

“Regrettably, Expedia has failed to honour key obligations under this agreement, in particular its payment terms, and our attempts in recent months to get Expedia to resolve these breaches, have failed so we now have no alternative but to give them notice,” the Ryanair statement noted.

Ryanair said that it would give Expedia 30 days to remedy the situation. On Wednesday, Expedia expressed disappointment with Ryanair’s allegation.

Expedia’s CEO, Dara Khosrowshahi, commented: “We believe that Expedia has complied in every respect with the terms of our agreement with Ryanair, including all payment terms, and that Ryanair has failed to honour its obligations under that agreement.”

The exec added: “We have a long history of solid relationships with our partners and take our contractual obligations seriously; we expect our partners to do the same. We strongly believe that Ryanair does not have the right to terminate our agreement.”

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www.ryanair.com