Ryanair shares are marginally in the red Thursday afternoon, despite news the strike threat from Irish pilots has now receded as the budget airline has provided written confirmation it now recognises pilot unions.
By 1435 BST, Ryanair shares were trading 0.07% lower at €15.14.
Quick response from Ryanair
Last week, Ryanair was facing a threat of strikes from multiple groups of its pilots across Europe. The Irish airline took the historic decision to recognise unions and the strikes were cancelled.
However, as Ryanair attended a number of meetings with the unions, Irish pilot union IMPACT came away from the meeting disappointed with the lack of written confirmation of the airline’s official recognition of pilot unions.
IMPACT told Ryanair the threat of strike action remained if it didn’t put its union recognition in writing, quickly.
Ryanair have complied with that request with alacrity. IMPACT confirmed Thursday it had received the written recognition confirmation it requested. And within the suggested two-day time frame.
“This advance is good news for Ryanair pilots, passengers and shareholders,” said IMPACT official Ashley Connolly in a statement on the union website.
“IMPACT will now immediately start work to make union recognition in Ryanair a practical reality by working with management to establish a formal collective bargaining agreement, and then by using this opportunity to win improved security, terms, and working conditions for the airline’s pilots,” Connolly added.
Ryanair opts to exit potential Niki investment
In other news Thursday, Ryanair has decided to step away from the purchase of bankrupt Austrian airline Niki.
Ryanair had been considering a deal to buy the beleaguered airline after Lufthansa withdrew from a potential deal last week, in order to secure it’s LGW purchase. However, certain details couldn’t be resolved in time for Ryanair to move forward.
“Regrettably there is insufficient clarity about Lufthansa aircraft leases to Niki which we couldn’t resolve in time,” Ryanair said in an emailed statement, according to a Reuters report.