Ryanair threatens to exit Denmark if unions blockade flights

Ryanair threatens to exit Denmark if unions blockade flights
http://www.ft.com/intl/cms/s/0/c58364d6-2191-11e5-aa5a-398b2169cf79.html...
July 3, 2015 4:36 pm
Ryanair threatens to exit Denmark if unions blockade flights
Richard Milne, Nordic Correspondent

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Ryanair is threatening to pull out of Denmark if unions in the Nordic country blockade the low-cost airline’s flights.
Michael O’Leary, Ryanair’s chief executive, said on Friday the Irish airline would move its sole Copenhagen-based aircraft to Kaunas in Lithuania beginning July 14.

This follows a Danish labour court ruling this week that allowed unions to strike and blockade Ryanair aircraft if the airline refuses to sign a collective agreement with workers.
On Friday, Mr O’Leary called the ruling “bizarre” and said the company would appeal to the European Commission and courts in Brussels.
He threatened to close Ryanair’s base in Billund, home to Legoland and headquarters of the Danish toy company, with its two aircraft if unions went ahead with the blockade.
“Then we would have to close Billund, even if we don’t want to. Copenhagen is more important to us than Billund, even if we love Billund dearly. I’ve been to Legoland myself,” Mr O’Leary said in a press conference in Copenhagen.
The court ruling against Ryanair represents one of the biggest threats to the business model of Europe’s biggest low-cost airline. It opens the door to similar actions in other countries, following complaints in France and Belgium.
Ryanair has argued that its Copenhagen-based staff should be subject to Irish law. But Danish unions claim this allows Ryanair to pay its cabin crew half the salary of staff in Cimber, a local low-cost rival. Unions said they would look to strike from the middle of this month.
Ryanair is not giving up on customers in Denmark, however, as it announced it would open up three new routes into Copenhagen. All 14 of its routes to and from Copenhagen would be operated by aircraft based outside Denmark as they cannot be blockaded by Danish unions, it added.
“Sadly, Copenhagen will lose out on these high-paid Ryanair jobs,” Mr O’Leary said.
He also hit out at the ruling for allowing what he called “competitor airline unions” — those active at Scandinavian flag carrier SAS — to blockade his aeroplanes.
The dispute has taken on a personal tone as the Social Democrat mayor of Copenhagen and several others cities banned their staff from using Ryanair for official business. Ryanair hit back with mocking adverts and said their bookings in Copenhagen had risen substantially.
Danish municipalities and investors have also divested themselves of Ryanair’s shares, which have risen 75 per cent in the past year.