Q&A: can Ryanair sue the government?
Updated on 18 August 2006
What's behind the budget carrier's threat to sue? And can it win?
"Luggage no bigger than this"
Ryanair's Michael O'Leary
Pic: Reuters
Low-cost carrier Ryanair is threatening to sue the government unless it reinstates previous airport security arrangements. Why?
Ryanair's business model relies on people travelling with relatively small amounts of luggage, some of which they take with them into the plane.
Luggage restrictions introduced last week, which are still in place, mean that hand luggage is restricted to a bag no larger than an average briefcase.
The longer the new measures are in place, the more Ryanair stands to lose. To offset this threat, the airline has today launched a 'Let's Get Britain Flying Again' promotion.
On what grounds is Ryanair threatening to sue?
Ryanair says that provided airport security is returned to "previous normal IATA (International Air Transport Association) levels" within the next seven days, it will not "make any claim for compensation which it is entitled to under the provisions of section 93 of the Transport Act 2000".
And what does section 93 of the Transport Act 2000 say?
It states that "A person ... who suffers direct injury or loss arising from compliance with a direction ... is entitled to receive compensation from the Secretary of State."
British Airways, which is also reported to be considering action for compensation, has noted that the provisions of the 2000 Act have not yet been tested.
What is the government's response?
A Department for Transport spokesperson has said that the measures were imposed last Thursday under another act of parliament, the Aviation Security Act 1982, and that therefore any compensation claims will be resisted.
Other airlines have also been vociferous in their criticisms of security after last week's terror alert? How do their positions differ from Ryanair's?
BA does not rely on travellers taking only small amounts of luggage. BA's beef is with the British Airports Authority, which it may sue for compensation for cancelled flights. There have been more than 700 BA cancellations from Heathrow alone since last Thursday. Analysts say BA could lose up to £40m as a result of delays since last week.
Virgin Atlantic's Paul Charles has explained that Virgin was in discussion with BAA about possible compensation. "We are not seeking compensation from the government, but we think the government should pay for extra security at airports," he said.
And who stands to lose out if Ryanair are successful in their bid for compensation?
If Ryanair wins its claim for compensation, the government could face a significant bill. If the government agrees to increase airport security, it will cost millions. Either way, the taxpayer ultimately foots the bill.
