Ryanair agrees new pay terms for pilots

Ryanair has confirmed that it has successfully concluded a round of intensive negotiations at its 31 pilot bases across Europe, under which all of Ryanair’s pilot bases discussed and voted in favour of a 12 month pay freeze with productivity increases as the preferred alternative to a 10% pay cut.

Ryanair had originally sought a pilot pay cut to address the current downturn and two consecutive quarters of trading losses suffered by Ryanair this winter.

Having considered the state of the industry and the job losses affecting huge numbers of qualified pilots across Europe, Ryanair pilots and their representative committees (ERC’s) negotiated an alternative to pay cuts by agreeing to a 12 month pay freeze and productivity improvements with Ryanair’s average pilot pay remaining unchanged over the next 12 months, while many pilot unions throughout Europe are conceding pay cuts.

Welcoming the conclusion of these pilot negotiations, Ryanair’s David O’Brien said:

“These are extraordinarily difficult times in the airline industry. In Ryanair, we are still lowering air fares, which means we will suffer losses in both our third and fourth quarters of the current year (FY08/09). Our pilots have recognised the difficulties we face and are making their contribution by negotiating this pay freeze and productivity increase as the preferred alternative to pay cuts.

“Management at Ryanair has already accepted significant pay cuts. Now our pilots have rowed in with a pay freeze and better productivity enhancements. We are tightening our belt, to ensure that Ryanair meets its target of a 5% reduction in unit costs over the coming year which will allow us to pass on even lower fares to our passengers, and ensure that Ryanair continues to grow, continues to recr uit and train new pilots, and continues to create jobs and promotions for our 6,000 people.”