Ryanair: Will stance on strikes harm the low-cost carrier in the long run?

posted on 13th August 2018 by yumna
Ryanair: Will stance on strikes harm the low-cost carrier in the long run?

As Ryanair continues to cancel flights in droves following industrial action, how far can the low-budget carrier’s healthy margins outweigh disruption to its operations?

It is clear to see that industrial action groups – mainly pilots and other worker’s unions – remain facing off in tense and stubborn battles. Negotiations seemingly go nowhere each time; steadfast agreements are rarely mentioned unless it is an agreement to strike.

The Irish airline only officially recognised unions in December 2017 and since then it has suffered some of the fiercest strikes in its history.

The carrier was recently forced to cancel over 300 flights in Europe, mainly Germany, as a pilots union in the county voted to strike.

Ryanair has continued to face off against industrial action again and again demonstrating its belief it can withstand the effects of striking staff better than other European airlines.

The strikes may not be enough to initially affect Ryanair in financial terms, but will it undermine the reliability of the airline over time?

Many passengers may switch to other low-budget carriers whom they can trust to run on time.

Ryanair’s boss Micheal O’Leary recently stated that the effects of Brexit and industrial action has led the airline to reinforce its position as a ‘opportunistic’ business and it would move jobs from the UK to Poland if the UK was not worth the effort anymore.

O’Leary recently gave up his financial bonus due to the effects of strikes. Is it time industrial action will affect the whole airline and not just the top seat?