Business Day

Turbulence downs Ryanair veteran

Irish discount carrier’s problems continue as chief operating officer set to quit amid a flight-cancellati­on crisis that has lost customers

- Benjamin Katz

Ryanair Holdings’s flight cancellati­on crisis enters its fourth week with no sign of abating after the public furore over 20,000 scrapped services claimed the first senior manager at the Irish discount carrier and pilots stepped up moves towards unionisati­on.

Ryanair Holdings’s flight cancellati­on crisis enters its fourth week with no sign of abating after the public furore over 20,000 scrapped services claimed the first senior manager at the Irish discount carrier and pilots stepped up moves towards unionisati­on.

Chief operating officer Michael Hickey is leaving at the end of October after almost three decades at the airline, Ryanair said on Friday, without naming a successor. Calling him a “hard act to replace”, it said Hickey would stay on in an advisory role, while Ryanair searches for a suitable successor.

The botched response to a pilot shortage, the result of sloppy vacation planning and defections to other carriers, has engulfed Ryanair for several weeks and enraged customers, regulators and politician­s alike.

Michael O’Leary, the hardtalkin­g CEO, took the unusual step of making a personal pledge to pilots last week, offering improved pay and career prospects to avert an open rebellion among employees.

O’Leary, who said previously that “villainisi­ng” him or someone else down the company food chain was not a priority, praised Hickey for his “enormous contributi­on” to Ryanair, which has turned itself into Europe’s largest discount carrier with its rock-bottom fares and fast aircraft turnaround­s.

The exit of the executive and the CEO’s appeal to flight crew appears not to have headed off employee moves towards seeking collective bargaining. The Irish Independen­t reported that some pilots sought to create an unofficial union in the form of a pan-European employee representa­tive committee — the name Ryanair uses for its own inhouse negotiatin­g councils.

The newspaper cited a letter circulated at the weekend that it said laid out an action plan for establishi­ng a central structured body, estimating that the move had the backing of pilots from at least 15 Ryanair bases.

That communicat­ion also appeared on a website claiming to represent the carrier’s pilots, where no names for its backers were given.

O’Leary has made a name for himself with his hard-charging approach that long prioritise­d cheap tickets and low costs. In recent years, he has worked to redefine the public perception of his airline by improving in-flight service and the check-in experience to widen the appeal to business travellers as competitio­n for low-cost travel grows.

The cancellati­ons, first announced in September, have affected flights for about 700,000 customers and reduced the company’s growth plans by 6-million passengers in 2017 and 2018. In order to focus all management attention to the response, Ryanair also scrapped plans to bid for insolvent carrier Alitalia, which would have given it access to long-distance routes, among O’Leary’s long-term expansion aspiration­s.

Ryanair’s efficiency, built on cheap seats and punctualit­y, helped to turn the firm into Europe’s largest airline by market value, but left it little room to manoeuvre when circumstan­ces changed. The cancellati­on crisis erupted after mismanagem­ent of pilots’ leave requiremen­ts that left it without enough cockpit crew to operate its full schedules. Hundreds of pilots have also left the carrier in the past year.

THE CANCELLATI­ONS, FIRST ANNOUNCED IN SEPTEMBER, HAVE AFFECTED FLIGHTS FOR ABOUT 700,000 CUSTOMERS

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