OAG Travel News

Expedia has hit back at public claims by Ryanair that it has failed to honour payments.

Ryanair issued a statement yesterday saying it was serving notice to the online agency because it had breached a number of its payment obligations.

It said Expedia had been given exclusive rights to sell hotel accommodations on the airline’s website, and although the deal went well in the early stages, in recent months Expedia has breached its contract.

“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,” said the Ryanair statement.

It said it was giving Expedia 30 days to correct the situation.

Responding this morning, Expedia said it was disappointed with Ryanair’s statement.

CEO Dara Khosrowshahi said: "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.

“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."

Expedia said the matters in dispute are the subject of legal proceedings that have been pending since May 2008 before the Commercial Court in London.

On Friday, the Court gave directions to the parties for an orderly resolution of this dispute with a view to a trial of the claim and counterclaim in November 2009 if the matter is not settled before then.

“Expedia will continue to vigorously assert its position in the pending legal proceedings and pursue its claims against Ryanair,” said Expedia's statement.

Source: By Bev Fearis www.travelmole.com