Ryanair ordered to treat passengers fairly

While it has also been told it must guarantee proper compensation and, if appropriate, overnight accommodation when it cancels or delays flights without good reason.

The OFT has also put other budget operators on notice that they should not try to weasel their way out of treating customers fairly. The Ryanair was refusing any liability for damage or delay to prams, sporting equipment, such as golf clubs, wheelchairs and musical instruments. Following the watchdog's intervention, this get-out clause has now been dropped. The airline threw up a maze of red-tape when someone tried to make a compensation claim for lost baggage. This required customers to report an item lost and then wait for 21 days to see if it turned up. They then had to make a second claim, filling out a form, within the following 21 days or their claim would be rejected. However, the company has now been ordered to drop the need to make the second report, which was seen as an obstacle to fair compensation. Ryanair also required customers making a claim for damaged or delayed baggage to fill out a long and complex so-called 'Property Irregularity Report'. This has now been dropped. New EU rules require airlines to pay compensation and/or offer overnight accommodation when they cancel a flight for reasons within their own control - such as mechanical failure or over-booking. However, the OFT was concerned that Ryanair has been failing to abide by these. Consequently, it has ordered to make travellers' rights clear to customers in future. This includes setting them out in a notice on its website. OFT Director of Services, Ray Hall, said: "The OFT's action has secured improvements to Ryanair's terms that will benefit passengers. "We expect other airlines using similar terms to stop doing so immediately. Continued use of such terms will be considered a breach of the Unfair Terms in Consumer Contracts Regulations 1999."

"The OFT took up the case following complaints from travellers and the Air Transport Users Council,(ATUC) a consumer body. "It is the latest in a long line of moves by regulators, ranging from the European Commission to the Advertising Standards Authority to bring budget operators into line. "Previously, action has been taken to require airlines to market their prices more honest, spelling out taxes and charges more clearly.

"Airlines have also been ordered to offer clearer information on which airports they use and the distance from the city they are supposed to service. "The ATUC chief executive, Simon Evans, said people paying budget prices should expect budget services. But this did not excuse airlines avoiding their legal responsibilities "A lot of what Ryanair is doing is good for passengers, but people should not expect to get something they are not paying for," he said.

"Our concern is that customers with legitimate claims were blocked by a wall of small print. Ryanair's conditions of carriage and its complaints handling procedure were pushing the boundaries of legislation too far," he said.

"We are very pleased with the outcome of the OFT investigation. Other airlines are doing similar things and we expect them to fall in line with the OFT interpretation of the law." Ryanair was keen to insist that it is just one of many airlines who have had to make some changes to their small print in recent times. A spokesman said: "The Office of Fair Trading has been in contact with a number of airlines, including Ryanair, Easyjet, Aer Lingus, Iberia, El Al, Thai Airways, British Airways, KLM and Jet 2 over the past two years to suggest additions/modifications to the terms and condition of travel. "Ryanair, in common with all of the above airlines, has been working with the OFT to implement these suggested additions/modifications."