Hertz and Ryanair headed for legal showdown

Hertz and Ryanair are likely heading to the courts after failing to resolve a contractual dispute that saw the former company cancel its exclusive rental car agreement with the low-cost carrier. 

The breakdown of negotiations, which was revealed late last week, will cause “maximum inconvenience” for Ryanair’s customers, the airline’s CEO, Michael O’Leary, told the Financial Times.

“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. We have instructed our lawyers to issue proceedings against Hertz for breach of contract,” he said.

According to the FT report, Hertz’s decision was triggered by a series of agreements forged by Ryanair with GDS providers Travelport, Amadeus and Sabre, which enable agents to offer car hire options with companies other than Hertz.

In its own statement on the issue, Hertz said that existing bookings would be fully honoured and that future bookings can be made directly at the Hertz, Thrifty and Firefly websites.

Michel Taride, group president of Hertz International, said: “We have enjoyed many years of a successful relationship with Ryanair, but unfortunately we were not able to reach agreement with the airline over a significant contractual dispute in spite of considerable effort.

“The majority of Ryanair passengers who need car hire from the Hertz brands in July and August are already booked and confirmed. Any customer who wishes to book car rental and enjoy great service at competitive rates can make arrangements directly with us. Customers can also modify existing bookings on the Ryanair website.

“Hertz deeply values all of its partnerships, some which have been going for more than 20 years. We strongly believe in mutually beneficial partnerships and would never take lightly the decision to end a key relationship.

“We are confident in our legal position and intend to pursue this matter vigorously through the courts.”