Ryanair says to take legal action after Hertz ends partnership

* Ryanair says Hertz ends long-running partnership

* Says Hertz objected to ticket sales bypassing website

* Hertz says will pursue case vigorously through the courts (Adds Hertz statement)

By Conor Humphries

DUBLIN, July 2 (Reuters) - Ryanair is to launch legal proceedings against U.S. car rental firm Hertz, which ended a long-running partnership following a dispute over Ryanair's indirect ticket sales, Europe's largest low-cost airline said on Thursday.

Hertz, which lists Ryanair among its 20 key partnerships alongside Lufthansa, Etihad Airways and others, said in a statement that it was confident in its legal position which it will pursue vigorously through the courts.

Ryanair said it received notice on Thursday that Hertz was ending its exclusive car hire supply agreement with Ryanair and had instructed its lawyers to pursue Hertz for breach of contract and damages.

The Irish airline said Hertz considered Ryanair's recent agreement with global distribution system (GDS) companies as a breach of their contract, which was not due to expire until 2020.

GDS systems allow some customers to buy Ryanair flights through third parties, bypassing Ryanair's website where Hertz's car hire services were promoted. Ryanair in the past has exclusively sold tickets through its website.

Ryanair said it had been distributing through GDSs since April 2014 "with Hertz's knowledge and support."

Hertz said it had been through lengthy discussions regarding the contractual dispute and that it regretted having to end the agreement.

Ryanair and Hertz said all existing bookings would be honoured. The budget airline said it was looking for a replacement supplier.

"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," Ryanair Chief Executive O'Leary said in the statement. (Additional reporting by Padraic Halpin; editing by Elaine Hardcastle)