Ryanair shares are lower Friday, despite news the Irish budget airline has signed an agreement with the Union representing its Portuguese-based pilots. The airline added that negotiations with the SPAC Union will now begin, over a full CLA, while it is also expecting to sign an initial agreement with the union representing its Spanish-based pilots, “shortly”.
By around 1145 BST, Ryanair shares were 1.89% lower at €11.45. The stock has been broadly flat-to-lower, in recent weeks.
Ryanair’s Portuguese pilots’ union agreement
Ryanair said Friday that it has reached an important agreement with the SPAC union, which represents its Portuguese-based pilots. This deal covers decisions relating to seniority and base transfers and paves the way for discussions to begin over a full CLA, under Portuguese employment law.
Ryanair added that it had signed similar agreements earlier in the week, with UK pilot’s union BALPA and ANPAC in Italy, to cover all of the airline’s directly employed pilots in those two countries.
“These signed agreements with our pilot unions in Portugal, the UK, Italy and shortly in Spain, demonstrate the considerable progress we’re making in concluding union agreements with our people in our major EU markets,” said Ryanair’s chief people officer, Eddie Wilson.
“I expect that these agreements in Spain, and Portugal in particular, will encourage the cabin crew unions in both those countries to remove competitor airline employees (who have been blocking progress) and to quickly conclude cabin crew agreements in those countries, as that’s what our Portuguese and Spanish cabin crew are now demanding,” Wilson added.
Agreements come amid airline failures
The news that Ryanair is beginning to make more progress with the Unions representing its European-based staff comes after a tough year for the airline. However, it’s a good news boost for the Irish business, at a time when other airlines are failing across the region.
“The recent wave of airline failures in Europe including Primera Air, Cobalt, Air Azur, and Small Planet (GER), as well as base closures/cuts announced by many of Europe’s major airlines in response to higher oil prices and lower air fares, have given a significant stimulus to these union negotiations over recent weeks,” Wilson said.