Budget airline Ryanair is drawing up plans to cut as many as 3,000 jobs and close bases in Europe, as the airline addresses the massive downturn in business caused by the coronavirus outbreak.
Accusing European governments of unfairly bailing out major competitors, the budget airline announced a restructuring programme on Friday that includes plans for unpaid leave and pay cuts of as much as 20%.
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In a company statement sent to Euronews, the airline says the plans will be “subject to consultations”, and “may result in the loss of up to 3,000 mainly pilot and cabin crew jobs… and the closure of a number of aircraft bases across Europe until traffic recovers”. Office staff would also be affected, the company added.
Ryanair blames the “expected significant decline” in air traffic this year, and competition “distorted” by what it claims is €30 billion in “selective State Aid ‘doping’ for flag carriers” in Europe.
Michael O’Leary — Chief Executive Officer of Ryanair whose 50% pay cut will now be extended until March 2021, the company says — singled out the French and German governments.
“We regret these job cuts. We regret these pay cuts, but they’re what the well-run airlines like Ryanair and others will have to do just to survive and compete against the likes of Lufthansa and Air France receiving tens of billions of state aid from their national governments,” he said.
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“The French government, for example, in the last month have announced a rule where they’re going to refund airport taxes, but only for French Airlines. It’s manifestly unfair. It’s in breach of the state aid rules and it’s in breach of competition rules.”
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Budget airline Ryanair is drawing up plans to cut as many as 3,000 jobs and close bases in Europe, as the airline addresses the massive downturn in business caused by the coronavirus outbreak.Accusing European governments of unfairly bailing out major competitors, the budget airline announced a restructuring programme on Friday that includes plans for unpaid leave and pay cuts of as much as 20%.
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In a company statement sent to Euronews, the airline says the plans will be “subject to consultations”, and “may result in the loss of up to 3,000 mainly pilot and cabin crew jobs… and the closure of a number of aircraft bases across Europe until traffic recovers”. Office staff would also be affected, the company added.Ryanair blames the “expected significant decline” in air traffic this year, and competition “distorted” by what it claims is €30 billion in “selective State Aid ‘doping’ for flag carriers” in Europe.
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Michael O’Leary — Chief Executive Officer of Ryanair whose 50% pay cut will now be extended until March 2021, the company says — singled out the French and German governments.“We regret these job cuts. We regret these pay cuts, but they’re what the well-run airlines like Ryanair and others will have to do just to survive and compete against the likes of Lufthansa and Air France receiving tens of billions of state aid from their national governments,” he said.
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“The French government, for example, in the last month have announced a rule where they’re going to refund airport taxes, but only for French Airlines. It’s manifestly unfair. It’s in breach of the state aid rules and it’s in breach of competition rules.”