Ryanair to take legal action against Hertz as it ends car deal

Car hire firm terminates agreement from noon, claiming breach of contract

Ryanair chief executive  Michael O’Leary said the company regretted Hertz’s decision to end its car hire supply agreement with the airline. Photograph: Eric Luke / The Irish Times
Ryanair chief executive Michael O’Leary said the company regretted Hertz’s decision to end its car hire supply agreement with the airline. Photograph: Eric Luke / The Irish Times

Ryanair said it will begin legal action against its former partner Hertz after the car hire company terminated its deal with the airline from noon on July 2nd.

Although existing bookings will be honored, the move leaves Ryanair without the option to book car hire through its website for about three months as it searches for a replacement.

Hertz is blaming breach of contract by Ryanair due to its agreement with GDS distribution companies, a deal Ryanair says has been in place since April last year. The contract with Hertz was recently extended for five years and was set to run until 2020.

“We regret Hertz’s decision to end our car hire agreement at such short notice today, at a time that will cause maximum inconvenience to our customers during the peak travel period. We have had a long and successful partnership with Hertz, and it’s a pity that this has ended in such an unfortunate and untimely manner,” Ryanair chief executive Michael O’Leary said.

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The company said any losses it incurred from the absence of the car hire bookings were expected to be recovered from the action against Hertz.

Ciara O'Brien

Ciara O'Brien

Ciara O'Brien is an Irish Times business and technology journalist