Ryanair looks at Latvian licence as a way of cutting costs
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LTNman, you have posted under a provocative heading without doing other than asking a question. You are presumably reheating, yet again, the "Ryanair is going to move to Latvia" story (even though there are better candidates to be found). What is going on here?
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This would really hack off a lot of new piots who have just had to fork out, unnecessarily, to convert a perfectly respectable JAA licence for an IAA one. Is Latvia a JAA state?
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And so FR's race to the bottom continues. altough it is probably true that MOL can lever a cheap deal out of the Latvian CAA to register his approx 130 a/c's & get an AOC from them this is not the full story. The more ties that are severed with Ireland the harder it is for irish/european employees to enforce irish laws and T&C on the company. So in approx 18 months or so MOL will be able to fire all his "Expensive" employees & replace them with Eastern Europeans who are ready willing and able to work for 50% less (Pilots & CC). This will be MOL's final big "Cost Reduction" strategy before he leaves FR in 2 years time with a Healthy Bonus for more Cost cutting. The next step after reregistring the A/C's & AOC is probably to move the Ryanair HQ to Lichenstein which is a very Tax freindly state.
Last edited by Flying Mech; 17th Dec 2005 at 11:54.
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Ryanair looks at Latvian licence in bid to cut costs
Tom McEnaney
RYANAIR is considering transferring its aviation certificate from Ireland to Latvia in a move which experts say could reduce the ability of the company's Irish pilots and cabin crew to claim the protection of Irish employment law.
Ryanair's chief executive, Michael O'Leary, has confirmed that the airline is considering moving its licence, known as an Air Operator's Certificate (AOC); but said this would be a simple cost-reduction measure and would not impinge on the employment rights of its Irish staff.
"We are not looking at a Latvian AOC from that point of view. Employment legislation in Ireland is aimed at multinationals and there's no way we can just scuttle off to Latvia to undermine it," he said.
"If that were possible, I'm fairly sure that everyone (multinational) would be doing it."
According to Mr O'Leary, Ryanair is considering taking advantage of the fact that the Latvian authorities apply lower certification charges than those in Ireland.
Expert
"I don't think that having a Latvian AOC would affect the rights of a single pilot based here," Mr O'Leary said.
Jim Trueick, a partner at the law firm O'Donnell Sweeney and one of the foremost experts in Irish employment law, disagreed.
He said: "The more Ryanair severs its connection to Ireland the easier it is to sustain an argument that the Irish courts do not have jurisdiction in matters of employment law. The key issue here is unfair dismissal legislation, but a slew of employment law follows on from that. Under the Unfair Dismissals Act, Irish citizens who do not normally perform their duties in the State are not covered."
Mr O'Leary dismissed Mr Trueick's opinion as "rubbish" and said that Irish pilots and cabin crew would continue to enjoy the protection of Irish employment legislation partly because they would continue to be resident in Ireland.
This argument was challenged by Mr Trueick. He said: "Somebody flying an aircraft that only lands and takes off from here occasionally is not necessarily covered (by employment legislation), even if they live here."
He added that if Ryanair were to move its AOC to Latvia it could then arrange its affairs in such as way as to ensure its Irish pilots and cabin crew were not covered under Irish legislation.
Headquarters
Mr O'Leary said he had no intention of making any changes which would diminish the rights of Irish pilots and cabin crew. "We will continue to have our headquarters here," he said. "The pilots will continue to be based here. They will continue to pay tax here and they will continued to be covered by Irish law."
Ryanair has had a tumultuous relationship with its Irish pilots.
Last month, it secured a Supreme Court injunction to prevent the Labour Court investigating complaints by a number of Ryanair's Irish pilots pending the outcome of an appeal by the airline to a recent High Court finding.
Ryanair is challenging a High Court finding that the Labour Court is correct in determining that a trade dispute exists at the airline under the Industrial Relations Act, 2001. It also determined Ryanair does not bargain collectively with staff and does not have an internal dispute resolution procedure.
http://www.unison.ie/irish_independe...issue_id=13436
Tom McEnaney
RYANAIR is considering transferring its aviation certificate from Ireland to Latvia in a move which experts say could reduce the ability of the company's Irish pilots and cabin crew to claim the protection of Irish employment law.
Ryanair's chief executive, Michael O'Leary, has confirmed that the airline is considering moving its licence, known as an Air Operator's Certificate (AOC); but said this would be a simple cost-reduction measure and would not impinge on the employment rights of its Irish staff.
"We are not looking at a Latvian AOC from that point of view. Employment legislation in Ireland is aimed at multinationals and there's no way we can just scuttle off to Latvia to undermine it," he said.
"If that were possible, I'm fairly sure that everyone (multinational) would be doing it."
According to Mr O'Leary, Ryanair is considering taking advantage of the fact that the Latvian authorities apply lower certification charges than those in Ireland.
Expert
"I don't think that having a Latvian AOC would affect the rights of a single pilot based here," Mr O'Leary said.
Jim Trueick, a partner at the law firm O'Donnell Sweeney and one of the foremost experts in Irish employment law, disagreed.
He said: "The more Ryanair severs its connection to Ireland the easier it is to sustain an argument that the Irish courts do not have jurisdiction in matters of employment law. The key issue here is unfair dismissal legislation, but a slew of employment law follows on from that. Under the Unfair Dismissals Act, Irish citizens who do not normally perform their duties in the State are not covered."
Mr O'Leary dismissed Mr Trueick's opinion as "rubbish" and said that Irish pilots and cabin crew would continue to enjoy the protection of Irish employment legislation partly because they would continue to be resident in Ireland.
This argument was challenged by Mr Trueick. He said: "Somebody flying an aircraft that only lands and takes off from here occasionally is not necessarily covered (by employment legislation), even if they live here."
He added that if Ryanair were to move its AOC to Latvia it could then arrange its affairs in such as way as to ensure its Irish pilots and cabin crew were not covered under Irish legislation.
Headquarters
Mr O'Leary said he had no intention of making any changes which would diminish the rights of Irish pilots and cabin crew. "We will continue to have our headquarters here," he said. "The pilots will continue to be based here. They will continue to pay tax here and they will continued to be covered by Irish law."
Ryanair has had a tumultuous relationship with its Irish pilots.
Last month, it secured a Supreme Court injunction to prevent the Labour Court investigating complaints by a number of Ryanair's Irish pilots pending the outcome of an appeal by the airline to a recent High Court finding.
Ryanair is challenging a High Court finding that the Labour Court is correct in determining that a trade dispute exists at the airline under the Industrial Relations Act, 2001. It also determined Ryanair does not bargain collectively with staff and does not have an internal dispute resolution procedure.
http://www.unison.ie/irish_independe...issue_id=13436
I call you back
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Tom McEnaney regularly writes Ryainair spin.
Earlier this year he announced a major expansion by FR at Dublin airport. After many paragraphs of free advertising for FR the last few lines pointed out that the expansion involved no new aircraft, merely the replacement of 200s with 800s and thus more seats.
He spends most of his time bashing the staff of any Irish airline and reproducing the management spin verbatum.
While this is not totally incorrect it doesn't exactly sound like the opinion of an expert whose is even aware of the relevant Aviation Laws. They determine whether local employment laws apply or not.
McEnaney probably found him in the FR staffroom.
Earlier this year he announced a major expansion by FR at Dublin airport. After many paragraphs of free advertising for FR the last few lines pointed out that the expansion involved no new aircraft, merely the replacement of 200s with 800s and thus more seats.
He spends most of his time bashing the staff of any Irish airline and reproducing the management spin verbatum.
Somebody flying an aircraft that only lands and takes off from here occasionally is not necessarily covered (by employment legislation), even if they live here."
McEnaney probably found him in the FR staffroom.
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its all horse**** and publicity pandering on the back of the irish ferries fiasco in ireland recently.an attempt to brow beat the iaa into giving in on the 1100 hours annual limit,once the gob****e pilots have accepted 5 on 4 off.
come on mick put your money where your mouth is and piss off to latvia for good.i think not!
come on mick put your money where your mouth is and piss off to latvia for good.i think not!
Thread Starter
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Quote from MOL http://www.sbpost.ie/breakingnews/br...xx&n=136598729
"Any such initiative if implemented would have no impact whatsoever on either our aircraft or our highly paid employees who are based here in Ireland"
"Any such initiative if implemented would have no impact whatsoever on either our aircraft or our highly paid employees who are based here in Ireland"
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If MoiKe O L@airy is denying it, that'll mean its more than likely actually true!
Not long now before the mighty Ry@nairski employs Russian pilots, paid in credits for use at the company store no doubt, with a "generous cash incentive", (dependent on base, of course), of a couple of dollars per sector. Get the planes maintained in Ulanbator too - why not - I doubt the man and his dog at the IAA are too worried who crews the planes, and even less who maintains them.
How long too before the IAA cave-in and allow 1100 hours per year as a "trial", soon to be validated and advanced to say, 1250, (has a nice ring to it, 'twelve fifty' does)?
Never ceases to call his employees "highly paid" though - why does that seem so unlikely, as all the prune threads will testify?
Moike O L@airy - possibly the most dangerous man in aviation today.
Not long now before the mighty Ry@nairski employs Russian pilots, paid in credits for use at the company store no doubt, with a "generous cash incentive", (dependent on base, of course), of a couple of dollars per sector. Get the planes maintained in Ulanbator too - why not - I doubt the man and his dog at the IAA are too worried who crews the planes, and even less who maintains them.
How long too before the IAA cave-in and allow 1100 hours per year as a "trial", soon to be validated and advanced to say, 1250, (has a nice ring to it, 'twelve fifty' does)?
Never ceases to call his employees "highly paid" though - why does that seem so unlikely, as all the prune threads will testify?
Moike O L@airy - possibly the most dangerous man in aviation today.
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For an international perspective, in Canada annual FTL is 1200 hrs. Not saying its right, just saying it already exists and has for a long, long time.
100 hrs/mo has a nice ring to it. I suspect most european pilots think not.
100 hrs/mo has a nice ring to it. I suspect most european pilots think not.
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The Grim Repa. If the Pilots work 5 on 4 off would they be able to achieve 1100 hrs per year?.
I guess Latvia has no FTL as such so RYR would be able to right their own rules. However EU Sub part Q might put a dampener on it???
I guess Latvia has no FTL as such so RYR would be able to right their own rules. However EU Sub part Q might put a dampener on it???
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once the gob****e pilots have accepted 5 on 4 off
The ATCOs at the UK ACCs work 6 on 4 off including two night shifts working harder and for less money than the most junior Ryanair Captain. They must be total gob****es!
Regards,
DFC
The ATCOs at the UK ACCs work 6 on 4 off including two night shifts working harder and for less money than the most junior Ryanair Captain. They must be total gob****es!
Regards,
DFC
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Ryanair denies Latvia transfer claims
Ryanair is denying reports that it plans to re-register its company in Latvia in a bid to cut operation costs.
Chief executive, Michael O`Leary says there is no truth in claims that the company was considering transferring its aviation certificate from Ireland to Latvia.
He is admitting, however, that Ryanair is holding dicussions with a number of EU aviation authorities with a view to obtaining lower aircraft leasing costs than the company currently pays for in Ireland.
Politicians express fear over Ryanair rumours
Opposition politicians have been reacting with surprise to reports that no-frills airline Ryanair may be attempting to re-register in Latvia.
The company’s chief executive, Michael O’Leary, has denied the rumours but has admitted that discussions are ongoing with a number of aviation authorities in the EU in an effort to lower aircraft leasing costs.
Fine Gael’s transport spokesperson Olivia Mitchell has expressed fears over the alleged move and feels it would have severe repercussions for the airline.
She said they would not receive the same level of loyalty in another country as they had in Ireland.
But she said Ryanair have been trying to move away from Ireland for some time by re-locating their hub to Stansted airport, and that they have been frustrated by the Dublin Airport Authority’s failure to provide them with a low-cost terminal.
Ryanair is denying reports that it plans to re-register its company in Latvia in a bid to cut operation costs.
Chief executive, Michael O`Leary says there is no truth in claims that the company was considering transferring its aviation certificate from Ireland to Latvia.
He is admitting, however, that Ryanair is holding dicussions with a number of EU aviation authorities with a view to obtaining lower aircraft leasing costs than the company currently pays for in Ireland.
Politicians express fear over Ryanair rumours
Opposition politicians have been reacting with surprise to reports that no-frills airline Ryanair may be attempting to re-register in Latvia.
The company’s chief executive, Michael O’Leary, has denied the rumours but has admitted that discussions are ongoing with a number of aviation authorities in the EU in an effort to lower aircraft leasing costs.
Fine Gael’s transport spokesperson Olivia Mitchell has expressed fears over the alleged move and feels it would have severe repercussions for the airline.
She said they would not receive the same level of loyalty in another country as they had in Ireland.
But she said Ryanair have been trying to move away from Ireland for some time by re-locating their hub to Stansted airport, and that they have been frustrated by the Dublin Airport Authority’s failure to provide them with a low-cost terminal.
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Guys N Gals;
As a matter of interest, Does anyone know what the IAA charge to register a new aircraft as opposed to what the Latvian Aviation Auth. charge ... ??
Considering the potential size of the Ryanair fleet, will this make a difference to the FR balance sheet.....??
As a matter of interest, Does anyone know what the IAA charge to register a new aircraft as opposed to what the Latvian Aviation Auth. charge ... ??
Considering the potential size of the Ryanair fleet, will this make a difference to the FR balance sheet.....??