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Ryanair scrambles to please pilots, customers, investors

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Ryanair boss Michael O’Leary scrambled to placate pilots and reassure investors as the airline’s annual general meeting was dominated by the cancellation of 2,000 flights in a “cock-up” that exposed major staffing issues.


The often outspoken CEO told investors that no more flights would be cancelled because of rostering issues and that the company’s profit margin would not be affected by the problems that sparked customer outrage and a wave of negative media coverage across Europe.


O’Leary told shareholders he took personal responsibility for the staffing issues and the way the company broke the news to customers, adding that Ryanair’s pilot pay levels may have been too modest in the past. However, he also used the meeting to outline a stick-and-carrot approach to dealing with pilots after some prepared a letter demanding new contracts.


“Will there be squabbles with pilots? There may be. They have been happening for about 30 years,” he said.


Captains at four under-pressure bases have been offered an extra 10,000 euros ($11,914) a year in addition to an offer of a 12,000 euro bonus for those who work an extra 10 days before the end of the year.


Citing pilot sources, Irish national broadcaster RTE said late on Thursday pilots from 55 bases had rejected the bonus pay offer, including at large Ryanair hubs in Dublin and London’s Stansted airport.


At the shareholder meeting, O’Leary had denied reports that a significant number of pilots had rejected the offer.


He also said he was considering forcing pilots to change their holiday plans and said any pilot who failed to show up for work as a form of industrial action would be frozen out of pay talks and denied promotion.


The Irish airline, Europe’s largest by passenger numbers, faced a wave of anger from customers after its announcement on Friday of plans to cancel between 40 and 50 flights a day until the end of October.


O’Leary said the decision was taken to cancel what amounted to 2 per cent of the airline’s total flights to avoid a sharp increase in delays because of a lack of reserve pilots. The rate of Ryanair’s on-time flights has since increased from 65 per cent to 91 per cent, he said.


“It was the right operational decision, but we handled it badly ... we upset and worried 80 million passengers,” O’Leary added.


Passengers on cancelled flights have complained that notice was far to short and that it was difficult to claim compensation. Others said they would not book a Ryanair flight while services were threatened with cancellation. — Reuters


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