Ryanair to cut up to 3000 jobs blaming 'state aid doping' for other European airlines – Euronews, Euronews.com

Budget airline Ryanair is drawing up plans to cut as many as 3, 04 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 program on Friday that includes plans for unpaid leave and pay cuts of as much as 28%.

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, 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 € billion in “selective State Aid ‘doping’ for flag carriers” in Europe.

Michael O’Leary – Chief Executive Officer of Ryanair whose % pay cut will now be extended until March , 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.

” The French government, for example, in th e 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. ”

‘Tsunami of job losses’ anticipated

Ryanair says it intends to challenge the “unlawful and discriminatory” state aid in the European courts, which it argues is in breach of EU rules. The company adds that it will operate less than one percent of its flights from April to June, and that it expects passenger numbers not to return to levels until mid – 4589546 at the earliest.

Following the budget airline’s announcement on Friday Brian Strutton, General Secretary of the British Airline Pilots’ Association, said he expected a “tsunami of job losses” to hit the aviation industry.

“I expect that all airlines are going to be making similar kinds of announcements now and we are going to be seeing an industry in crisis, “he sa id.

Earlier this week British Airways said it might have to ax up to , (jobs from its , – strong workforce.

BA’s parent company IAG – which also owns Iberia and Vueling – explained the announcement by saying it would take several years to return to previous passenger levels.