Ryanair's £3m claim against UK government

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Source: The guardian

Ryanair's £3m claim against government to go to high court

Ryanair will take its legal battle with the government to the high court today as it demands compensation for disruption caused by new airport security measures.
The low-cost carrier will submit a damages claim if it has not received a response from an ultimatum sent to the Department for Transport on August 25.

In a letter to the department, Ryanair demanded £3m to compensate for lost revenue from the 250 flights it cancelled due to the disruption caused by the emergency security guidelines at British airports introduced in response to the heightened terrorism alert.

The department said at the time that Ryanair's claims had no legal merit and it gave its high court writ similar short shrift at the weekend. A spokesman said: "There is no change in our position. We do not believe that Ryanair has any legal grounds."
The Dublin-based carrier is suing under the Transport Act 2000, which gives the British government powers over airports in times of national emergency.

Government officials say the security directives are covered by the Aviation Security Act, 1982. The Transport Act contains provisions for claiming compensation, but the Aviation Security Act, whose broad remit includes security measures at airports, specifically rules out damages claims.

Michael O'Leary, chief executive of Ryanair, kept up his outspoken attacks on the government last week, accusing the department of "making it up on the spot" when the guidelines were implemented on August 10.

The measures were relaxed slightly several days later, but hand luggage is still limited to a laptop-sized bag and passengers are prohibited from carrying liquids through security checkpoints.

Mr O'Leary is bringing his claim just as Ryanair raises the cost of checking in baggage, a move that brought accusations from its rival easyJet of "blatant profiteering" - a claim denied by Mr O'Leary.

"There is no way we are changing any of our checked-in baggage payments," said Mr O'Leary. "I hope people will travel with less check-in luggage. The security restrictions are entirely ineffective and the sooner they are repealed the better."

British Airways, which cancelled more than a thousand flights last month at an estimated cost of £50m, has ruled out suing the government but is still considering legal action against BAA, the owner of Heathrow airport.

Virgin Atlantic is asking for rebates on the fees it pays BAA before it considers the option of suing.

Security officials have warned that air passengers face long-term hand-luggage restrictions because screening machines cannot detect all types of liquid explosive.

The Department for Transport has said the threat to airliners from liquid bombs represented a "step-change" in airport security and any relaxation of baggage guidelines was contingent on improved screening technology and the development of a global safety regime.

Officials said staff using x-ray machines at passenger security checkpoints had a better chance of detecting containers for liquids if the hand luggage was smaller.