Business

Ryanair Subsidiary Lauda To Shut Down Vienna Base

Ryanair Holdings PLC subsidiary Lauda is to close its base at Vienna’s airport following a dispute with a trade union, the company said on Friday.

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Some 300 jobs will be affected, the airline said. It had recently given the Vida union an ultimatum to sign a new collective agreement with significant wage cuts for employees due to the coronavirus crisis.

As the union refused, the base will be closed on May 29, the statement said.

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“In a shameful way, the union Vida ignored the wishes of more than 95% of the pilots and 70% of the cabin crew at Lauda’s A320 base in Vienna and destroyed more than 300 well-paid jobs,” Lauda bosses Andreas Gruber and David O’Brien were quoted as saying.

Vida on the other hand described Ryanair and Austria’s Economic Chamber as “gravediggers” of living wages. The chamber had spoken out in favour of signing the wage deal.

According to the airline, the new agreement would have given junior cabin crew an average annual income of EUR24,450, a captain would have earned about EUR117,000.

The Vienna base is by far the largest base of the Ryanair subsidiary, which currently has a fleet of 26 aircraft. The aircraft are grounded due to the virus pandemic.

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Categories: Business, Others

Tagged as: Independent