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mxaxai
Topic Author
Posts: 1885
Joined: Sat Jun 18, 2016 7:29 am

Ryanair to layoff 3,000: including pilots,and FAs; cut FA wages by 20%

Fri May 01, 2020 12:07 pm

Per reports from today, Ryanair is looking to reduce their workforce by 3,000 employees. Most of these would be pilots and flight attendants. Additionally, many employees will have to take unpaid leave but will remain employed by Ryanair.
They are also looking to cut wages across the board by 20 percent. Per O'Leary this is "the minimum to survive the next 12 months", further reductions may follow. They're also in discussions with Boeing (for FR itself) and Airbus (for Lauda Air) to defer deliveries.
https://www.theguardian.com/business/20 ... tructuring

What is surprising to me is how few employees Ryanair has. I never quite realized that.
FR was the largest EU airline in 2019 with 152 million passengers but - per the airline's statement - only has ~20,000 employees (7,600 pax/employee).
LH group, on the other hand, is the no. 2 with 145 million passengers and required ~137,000 employees to achieve that (1058 pax/employee).
3rd is IAG with 118 million passengers and ~65,000 employees (1,815 pax/employee).
Oh, and for comparison Alitalia carried 22 million passengers with ~12,000 employees (1,833 pax/employee).

Either Lufthansa is massively overstaffed or FR has lots of people working for them that don't show up on their balance sheets. Or possibly both. In any case many contractors will lose their jobs as well but won't show up on the airlines' press releases.
 
MIflyer12
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Joined: Mon Feb 18, 2013 11:58 pm

Re: Ryanair to layoff 3,000 pilots, FAs; cut wages by 20%

Fri May 01, 2020 12:38 pm

Stage length matters. You would do well to look at a distance-adjusted metric, perhaps number of employees per Billion available seat kilometers. You also need to strip out ancillary lines of business that Ryanair doesn't operate (like LH's catering). But, yes, there are significant differences across European carriers.
 
mmo
Posts: 2059
Joined: Thu Apr 18, 2013 3:04 pm

Re: Ryanair to layoff 3,000 pilots, FAs; cut wages by 20%

Fri May 01, 2020 12:39 pm

First of all, I would suggest you change the title of your post. Your post title states 3000 pilots, the Guardian article does not state that. It states 3000 employees "composed mainly of pilots and flight attendants". Furthermore, FR uses a lot of contract pilots, don't know about F/As. I don't know if the contract pilots have had their contracts terminated or not. But, I would venture to say, RF will try to put the squeeze on the unionized pilots who are actually employed by FR. I think, from FR's perspective, this is the perfect time to eliminate all the gains the pilots made in the past couple of years.
If we weren't all crazy we'd all go insane!
 
Amsterdam
Posts: 449
Joined: Thu Mar 17, 2011 12:52 am

Re: Ryanair to layoff 3,000 pilots, FAs; cut wages by 20%

Fri May 01, 2020 12:43 pm

LH has one the biggest maintenance companies in the world. Also one of the biggest catering companies in the world.
It seems you think most of those LH employees are flight staff.
 
Westerwaelder
Posts: 239
Joined: Fri Apr 03, 2020 12:27 pm

Re: Ryanair to layoff 3,000 pilots, FAs; cut wages by 20%

Fri May 01, 2020 2:43 pm

mxaxai wrote:
Per reports from today, Ryanair is looking to reduce their workforce by 3,000 employees. Most of these would be pilots and flight attendants. Additionally, many employees will have to take unpaid leave but will remain employed by Ryanair.
They are also looking to cut wages across the board by 20 percent. Per O'Leary this is "the minimum to survive the next 12 months", further reductions may follow. They're also in discussions with Boeing (for FR itself) and Airbus (for Lauda Air) to defer deliveries.
https://www.theguardian.com/business/20 ... tructuring

What is surprising to me is how few employees Ryanair has. I never quite realized that.
FR was the largest EU airline in 2019 with 152 million passengers but - per the airline's statement - only has ~20,000 employees (7,600 pax/employee).
LH group, on the other hand, is the no. 2 with 145 million passengers and required ~137,000 employees to achieve that (1058 pax/employee).
3rd is IAG with 118 million passengers and ~65,000 employees (1,815 pax/employee).
Oh, and for comparison Alitalia carried 22 million passengers with ~12,000 employees (1,833 pax/employee).

Either Lufthansa is massively overstaffed or FR has lots of people working for them that don't show up on their balance sheets. Or possibly both. In any case many contractors will lose their jobs as well but won't show up on the airlines' press releases.


How many contractors does FR have working for them? And are the 20,000 including all of their subsidiaries? You can't compare numbers like this. What about miles & More and IFE and different cabins in addition to the ones named above by other posters? All of these add complexity and staff. There is a reason why one is full service and the other is ULCC
 
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dutchflyboi
Posts: 93
Joined: Sat Apr 26, 2008 5:56 pm

Re: Ryanair to layoff 3,000 pilots, FAs; cut wages by 20%

Fri May 01, 2020 3:39 pm

mxaxai wrote:

What is surprising to me is how few employees Ryanair has. I never quite realized that.
FR was the largest EU airline in 2019 with 152 million passengers but - per the airline's statement - only has ~20,000 employees (7,600 pax/employee).
LH group, on the other hand, is the no. 2 with 145 million passengers and required ~137,000 employees to achieve that (1058 pax/employee).
3rd is IAG with 118 million passengers and ~65,000 employees (1,815 pax/employee).
Oh, and for comparison Alitalia carried 22 million passengers with ~12,000 employees (1,833 pax/employee).

Either Lufthansa is massively overstaffed or FR has lots of people working for them that don't show up on their balance sheets. Or possibly both. In any case many contractors will lose their jobs as well but won't show up on the airlines' press releases.


Most airlines (traditional airlines) employ their own ground staff, and so on. Carriers like Ryanair, easyJet, Wizz (your low cost, low fare airlines) have almost none of these as employees. That is the part that in general is subcontracted to companies like Menzies and Swissport .
 
RvA
Posts: 380
Joined: Tue Sep 15, 2015 12:37 pm

Re: Ryanair to layoff 3,000 pilots, FAs; cut wages by 20%

Fri May 01, 2020 3:56 pm

If I am not wrong a lot of FR pilots and crew and not directly employed by FR but by an intermediary? Anyone have more insight into that?
 
leghorn
Posts: 1297
Joined: Sun Jan 22, 2017 9:13 am

Re: Ryanair to layoff 3,000 pilots, FAs; cut wages by 20%

Fri May 01, 2020 5:15 pm

mmo wrote:
But, I would venture to say, RF will try to put the squeeze on the unionized pilots who are actually employed by FR. I think, from FR's perspective, this is the perfect time to eliminate all the gains the pilots made in the past couple of years.

Never waste a good crisis. Absolutely every airline will be using this as an opportunity to re-org, get rid of troublesome employees and get any loans they can from Government with the fewest strings attached.
During normal times it is hard to do some good hard pruning as you lose or the Market thinks you are loosing the initiative against your competitors.

What little is left of the Union movement in Ryanair will be gone on the other side of this crisis.
 
oldJoe
Posts: 186
Joined: Fri Jan 10, 2020 11:04 pm

Re: Ryanair to layoff 3,000 pilots, FAs; cut wages by 20%

Fri May 01, 2020 10:30 pm

RvA wrote:
If I am not wrong a lot of FR pilots and crew and not directly employed by FR but by an intermediary? Anyone have more insight into that?


Have a look here : https://workforceintl.com/ .... for example
or here ( sorry in german only ) : https://www.spiegel.de/wirtschaft/unter ... 40492.html . Companies like "Brookfield" or "McGinley" are mentioned
 
GDB
Posts: 13751
Joined: Wed May 23, 2001 6:25 pm

Re: Ryanair to layoff 3,000 pilots, FAs; cut wages by 20%

Sat May 02, 2020 1:43 am

leghorn wrote:
mmo wrote:
But, I would venture to say, RF will try to put the squeeze on the unionized pilots who are actually employed by FR. I think, from FR's perspective, this is the perfect time to eliminate all the gains the pilots made in the past couple of years.

Never waste a good crisis. Absolutely every airline will be using this as an opportunity to re-org, get rid of troublesome employees and get any loans they can from Government with the fewest strings attached.
During normal times it is hard to do some good hard pruning as you lose or the Market thinks you are loosing the initiative against your competitors.

What little is left of the Union movement in Ryanair will be gone on the other side of this crisis.


With huge spikes in unemployment, many firms despite the furlough schemes possibly not recovering, with savings reduced, LCC's problems might well be that a large part of their customer base simply will be unwilling and/or unable to fly, or at least as much as they did before.
All this assuming no second wave of infection.
FR in particular created a new market, one that might not exist after all of this, or at least in a reduced form.
 
leghorn
Posts: 1297
Joined: Sun Jan 22, 2017 9:13 am

Re: Ryanair to layoff 3,000 pilots, FAs; cut wages by 20%

Sat May 02, 2020 10:28 am

GDB wrote:
FR in particular created a new market, one that might not exist after all of this, or at least in a reduced form.

This particular Ryanair Customer will book a flight when they are available again. Ryanair aren't flying to my desired location because of a government imposed lockdown.
I will have no hesitation about booking.
 
a350lover
Posts: 873
Joined: Sun Dec 24, 2017 11:21 am

Re: Ryanair to layoff 3,000: including pilots,and FAs; cut FA wages by 20%

Sat May 02, 2020 11:20 am

Do you think FR would need to move towards "more" main airports after this? If demand stays low for at least 2-3 years, and fares remain low so that all airlines can attract customers to planes, I am not sure Ryanair will be strong enough to remain in secondary ports.

Although in the last years they have slowly moved towards main runways (FRA, AMS, BRU, etc.) their operations in many markets are still very focused on isolated places i.e Beauvais, Skavsta, Torp, Memmimgen. Do you see Ryanair moving to main airports in these cities as demand increases?
 
leghorn
Posts: 1297
Joined: Sun Jan 22, 2017 9:13 am

Re: Ryanair to layoff 3,000: including pilots,and FAs; cut FA wages by 20%

Sat May 02, 2020 11:55 am

I fly from a main airport. My experience of them has been mostly flying from what I consider to be main airports e.g. Dublin, Gatwick, Edinburgh, Rome, Frankfurt am Main, Stuttgart, Cologne
People on this forum may think they are flying mainly from remote little airports but their target clientele are flying mainly from what they consider to be, for them, convenient locations.
Ryanair is generally airport agnostic. Their main concern is whether their costs are significantly lower than others while still being able to fill their planes.

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