Hertz and Ryanair Partnership Ends in Legal Battle
Photo courtesy of Hertz
In a shocking turn of events, The Hertz Corporation announced last week that the company was terminating its car hire agreement with Ryanair after the two companies became involved in a lengthy contractual dispute.
Despite the partnership termination, both Hertz and Ryanair are reassuring customers who previously booked a flight or car rental through the partnership that they will still have their orders fully honored. All future bookings must be made through each company’s respective website, though.
Hertz international group president Michel Taride released a statement about the how the company plans on taking Ryanair to court:
“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. … 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.”
In response to the partnership termination and subsequent comments from Hertz, Ryanair CEO Michael O’Leary released a statement of his own about the legal issues between the companies:
“We regret Hertz’s decision to end our car hire agreement at such short notice today, at a time that will cause maximum inconvenience to our customers during the peak travel period. 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.”
Ryanair claims the cause of the issues is Hertz viewing the airline’s agreement with GDS distribution companies as a breach of contract. Not only does Ryanair deny the claims, but it also states Hertz knew and supported the distribution model for more than 15 months.
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