Ryanair berated over late payments

A HIGH COURT judge has described as “thoroughly unattractive” a “tactic” by Ryanair to withhold until “the last possible moment…

A HIGH COURT judge has described as “thoroughly unattractive” a “tactic” by Ryanair to withhold until “the last possible moment” some €8.4 million due to the Dublin Airport Authority for airport charges and other services at Dublin airport.

Ryanair boss Michael O’Leary was in court to hear Mr Justice Peter Kelly make the remarks yesterday. Mr Justice Kelly said a dispute over ticket-checking machines was irrelevant and not a defence to the sums which Ryanair had accepted were due.

Ryanair had engaged in brinkmanship and it was not permitted to relate this to any dispute it had with the airport authority.

The judge said it was only after the airport authority brought Commercial Court proceedings that Ryanair had paid €7.77 million of the sums due on October 9th.

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A sum of €500,000 was withheld by Ryanair as part of its dispute over installation fees for self-service check-in machines. That was paid last week but another €57,000 remained due under an agreement providing for interest for late payment.

This behaviour was “thoroughly unattractive and disreputable” and was “all brinkmanship”, the judge said. He was satisfied it was all part of a tactic by Ryanair.

Mr Justice Kelly yesterday transferred the proceedings by the Dublin Airport Authority against Ryanair over the €8.2 million to the Commercial Court list and granted judgment to the airport in the sum of €57,000 still outstanding.

He also awarded costs against Ryanair and refused to put a stay on his orders.

Judgment for €57,000 was sought by Cian Ferriter, for Dublin airport, which claimed Ryanair was deliberately and unlawfully withholding payments.

Mr Ferriter said this was part of a campaign by Ryanair.

The sums related to amounts outstanding for last July and August. Under credit terms, Ryanair had 30 days from the date of the relevant invoices to pay the sums.

Ryanair had paid €7.7 million the day after the proceedings were initiated but withheld the remaining €500,000 because, Mr Ferriter said, this would keep the case under the €1 million threshold for admission of cases to the Commercial Court. It had just last week paid the outstanding €500,000 but it had not paid the €57,000 due in interest.

Martin Hayden SC, for Ryanair, denied there was any tactic or campaign to withhold monies. He said there was a genuine dispute relating to the airport’s handling of Ryanair’s installation of self-service ticket-checking machines.

Mary Carolan

Mary Carolan

Mary Carolan is the Legal Affairs Correspondent of the Irish Times