Ryanair Cost-cutting?
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Ryanair Cost-cutting?
From today's Sunday Times:
THE Ryanair boss Michael O’Leary is attempting to persuade staff to accept a pay freeze as part of a cost-cutting drive.
Michael Cawley, deputy chief executive, said the airline was considering a pay freeze to be agreed this month. It would apply to all employees, including senior management, and save the airline between €3m and €4m a year, he said.
“We have just had a profit warning and we are looking at the possibility of recording the first (quarterly) loss in the company’s history,” said Cawley.
O’Leary is understood to have met pilots based at Stansted and Dublin to outline his latest cost-cutting plans. Other moves under consideration include making pilots pay for their own annual medical check-ups, their aviation licence renewal fees, uniforms and changes to pension contributions.
The measures would be introduced only if the company did not introduce a pay freeze, Cawley said.
Ryanair is this week expected to announce it has agreed a deal that will allow it to remain at Charleroi, its Belgian base. The airport will make Ryanair’s terms of business — which were ruled illegal by the European Commission — available to all airlines.
THE Ryanair boss Michael O’Leary is attempting to persuade staff to accept a pay freeze as part of a cost-cutting drive.
Michael Cawley, deputy chief executive, said the airline was considering a pay freeze to be agreed this month. It would apply to all employees, including senior management, and save the airline between €3m and €4m a year, he said.
“We have just had a profit warning and we are looking at the possibility of recording the first (quarterly) loss in the company’s history,” said Cawley.
O’Leary is understood to have met pilots based at Stansted and Dublin to outline his latest cost-cutting plans. Other moves under consideration include making pilots pay for their own annual medical check-ups, their aviation licence renewal fees, uniforms and changes to pension contributions.
The measures would be introduced only if the company did not introduce a pay freeze, Cawley said.
Ryanair is this week expected to announce it has agreed a deal that will allow it to remain at Charleroi, its Belgian base. The airport will make Ryanair’s terms of business — which were ruled illegal by the European Commission — available to all airlines.
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How much money does Ryanair actually need? When all its massive profits have been taken into consideration why does it still feel the need to deny its employees a decent and consistent salary. I understand its doing everything in its powers to make airfares cheaper for the punter, but why should that ethic be at the cost of staff wages.???
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When 1.5 years ago I was considering joining them, in the introductory chat, we were told that the company has 1bn Euros put aside for any eventuality, like fighting some airline on the same route, or taking someone to court or anything they may need it for.
So why not dip into this reserve and keep your workforce RYR?
I don't think the management are bright enough to think like that, but then which airline's management are?
So why not dip into this reserve and keep your workforce RYR?
I don't think the management are bright enough to think like that, but then which airline's management are?
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The crew's are working harder and harder that goes for both Flight and Cabin crew and they don't want to give them some credit and give them a pay increase. It's not their fault O'Leary cocked up by getting back handers for flying to subsidised airports and now my they suffer -- Typical Ryanair really !
Thread Starter
From www.ryanair.com:
Financial results released in June (03) shows record traffic and profit growth for the year (end 31 Mar’03). Passenger traffic for the year grew by 42% to 15.7m as average load factors increased from 81% to 84%, primarily due to a 6% reduction in average fares. Total revenues in the year rose by 35%, however operating costs rose at a slower rate by 26%. Net Profit increased by 59% to €239.4m.
Now I may be simple, but if a pay freeze would save Mo'L €3-4m, wouldn't an extra €0.19-€0.26 per passenger achieve much the same? Without dealing the hard-working crews such a kick in the slats as he's suggesting?
Financial results released in June (03) shows record traffic and profit growth for the year (end 31 Mar’03). Passenger traffic for the year grew by 42% to 15.7m as average load factors increased from 81% to 84%, primarily due to a 6% reduction in average fares. Total revenues in the year rose by 35%, however operating costs rose at a slower rate by 26%. Net Profit increased by 59% to €239.4m.
Now I may be simple, but if a pay freeze would save Mo'L €3-4m, wouldn't an extra €0.19-€0.26 per passenger achieve much the same? Without dealing the hard-working crews such a kick in the slats as he's suggesting?
Thread Starter
I'd prefer to leave personalities out of this debate and focus instead upon economics.
RYANAIR ECONOMICS EXAM
Please answer all questions. Time allowed 30 minutes
1. €3-4m cost savings and 15.7m passengers per year =
A. A pay freeze.
B. Buy your own uniforms and Class 1 medical revalidations.
C. Less than €0.50 extra per passenger ticket.
D. Any of the above
Extra paper may be provided. At €1 per sheet.
People are Mo'L's primary (and priceless) asset. Pi$$ them off and there'd be no airline.
RYANAIR ECONOMICS EXAM
Please answer all questions. Time allowed 30 minutes
1. €3-4m cost savings and 15.7m passengers per year =
A. A pay freeze.
B. Buy your own uniforms and Class 1 medical revalidations.
C. Less than €0.50 extra per passenger ticket.
D. Any of the above
Extra paper may be provided. At €1 per sheet.
People are Mo'L's primary (and priceless) asset. Pi$$ them off and there'd be no airline.
Last edited by BEagle; 11th Apr 2004 at 13:09.
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"O'Leary has ruled out any negotiations with trade unions"
It would seem BALPA and IALPA have no intention of getting involved anyway. They too must fear the slush fund being used against them.
We are all watching the future of aviation unfold here folks, no one is safe if O'Leary continues unchallenged.
SJ
It would seem BALPA and IALPA have no intention of getting involved anyway. They too must fear the slush fund being used against them.
We are all watching the future of aviation unfold here folks, no one is safe if O'Leary continues unchallenged.
SJ
The beginning of the end.........................................?
Don't get me wrong, I'm all for LCCs that genuinely model themselves on Southwest, Jetblue, or better and I appreciate their contribution in bringing fares down to realistic levels. However, I have no time or respect for any company (airline or other) which treats its customers with utter contempt.
Don't get me wrong, I'm all for LCCs that genuinely model themselves on Southwest, Jetblue, or better and I appreciate their contribution in bringing fares down to realistic levels. However, I have no time or respect for any company (airline or other) which treats its customers with utter contempt.
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the end of the beginning!
This all due to zero pilot representation. Bound to happen!
How can the lonely ryanair pilot stand up to this arrogant dictator.?
Where have all your subs gone guys ?
Those of you that were stupid enough to join respective associations i mean.
SJ
This all due to zero pilot representation. Bound to happen!
How can the lonely ryanair pilot stand up to this arrogant dictator.?
Where have all your subs gone guys ?
Those of you that were stupid enough to join respective associations i mean.
SJ
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Are the Ryanair guys toothless or what? Stand up for yourselves. Give this guy an inch and he'll take a mile. I can't believe people allow themselves to be treated like this. Why?
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I would just simply fail to pay for anything this idiot comes up with next. Anyone accepting his future terms must be examined upstairs.
Just grounding his airplanes for one day may make him see sense.
Just grounding his airplanes for one day may make him see sense.
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All it takes is for confidence in this company to slip for the whole house of cards to fall. The people working there have no respect for themselves. It's better to starve than to fill O Leary's pockets. Believe me guys thats what you are doing! When it all goes pear shaped he will be the one retiring with millions made by your 6 sector days.
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Ther is another irish company that doesnt yet provide a uniform for its flightdeck (even though its been going for a year), you have to pay for your own medical renewals, and probably licence renewals when the time comes.
Must be something in the water !!!!
Must be something in the water !!!!
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i am suprised he has not thought of a single man cockpit as yet ,that would save lots more money or is it yet to come?
the mind boggles, the future is not working for ryanair.
the mind boggles, the future is not working for ryanair.
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You all deserve it
YOU = pilots and cabin crew in Ryanair
you have permitted to happen long time ago when accepted to pay for you type rating and so on..........
This company and other like this are currently ruining the aviation market, years of cooperation between countries, years of aviation employee fights.
And now you realize what you have caused and ............. cry
best of luck
YOU = pilots and cabin crew in Ryanair
you have permitted to happen long time ago when accepted to pay for you type rating and so on..........
This company and other like this are currently ruining the aviation market, years of cooperation between countries, years of aviation employee fights.
And now you realize what you have caused and ............. cry
best of luck
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you can't just lie down and roll over guys and gals theres' got to be more gusto to your voice at this stage than waiting for the next guy to speak and then live in fear of the repercusions until the walls cave in for want of some solidarity???
but it easy from our side of the fence
stuck here looking in
they are so afraid they refuse to post !!
they're afraid to post !!!
who can blame them
this is just a stepping stone to future frustration and self-loathing
The rest of us are next
we're all screwed !!
SJ
but it easy from our side of the fence
stuck here looking in
they are so afraid they refuse to post !!
they're afraid to post !!!
who can blame them
this is just a stepping stone to future frustration and self-loathing
The rest of us are next
we're all screwed !!
SJ
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Have heard that all crew water/tea etc is to be removed off the aircraft as well.
When O'Leary finished his speel at the Stansted meeting, the pilots responded by GIVING HIM A ROUND OF APPLAUSE!!!!???
OK, the first guy who started clapping was management and all the guys near him were all Dutch Ryanair new guys, obviously keen to impress no doubt!!!
The Dublin meeting was considerably less well received.
All I can say is: Get IALPA and BALPA representation quick and 100% unity or you're finished as a career. Good Luck.
When O'Leary finished his speel at the Stansted meeting, the pilots responded by GIVING HIM A ROUND OF APPLAUSE!!!!???
OK, the first guy who started clapping was management and all the guys near him were all Dutch Ryanair new guys, obviously keen to impress no doubt!!!
The Dublin meeting was considerably less well received.
All I can say is: Get IALPA and BALPA representation quick and 100% unity or you're finished as a career. Good Luck.