Ryanair
Forced to Pay the French €525,000 for Impounded Jet
Things have gone from bad to worse for Europe's most hated low-cost airline
Ryanair and chief executive Michael O'Leary. The tight-fisted Irish man is
known for pioneering the low-cost airline movement. But also for making
passengers travel like sardines with minimal luggage and maximum discomfort. He
even proposed a move to make them pay for using the restroom onboard (which
turned out to be illegal).
Now O'Leary is left positively fuming after the company's latest gaffe which
sees them pay the French airport of Bordeaux some €525,000 ($595 million) in
return for an impounded jet.
Low-Cost and High Penalties
Yet over the years, it isn't just Ryanair's passengers who have suffered at the
hands of O'Leary and his cost-cutting policies. The ruling by the European
Commission to pay the funds to recover the jet (in which 150 London-bound
passengers were forced off as the airport seized it) was just one of seven
rulings over illegal operations by Ryanair. over illegal arrangements at local
airports including Cagliari, Altenburg, and Klagenfurt.
The airline was forced to pay some €23.7 million ($26.9 million) over the
unfair competitive advantage it had arranged with airports across Europe.
Ryanair employees have been having a bad time lately as well, staging strikes
over pay and working conditions. Six employees were also recently fired after
being pictured sleeping on the floor in a Ryanair office in Spain.
The Cases Against Ryanair Just Keep Piling Up
As if a €23.7-million fine, half a million for an impounded jet, dissatisfied
staff and customers weren't enough, Ryanair's woes are just getting started.
Italy's antitrust agency has opened up a probe against the airline's new hand
luggage policy. The policy means that if you don't pay for a premium service
you can pretty much carry nothing on board, not even a laptop.
Moreover, the airline and chief exec O'Learly are being sued by a New York
shareholder who claims that the share price was inflated by O'Leary and his
promise of managing labor relations and keeping costs down.
Ryanair has also recently been the subject of a high-profile racial case
against an elderly passenger in which a customer was filmed hurling abuse.
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