RYA.L Share News (RYA)

(Sharecast News) - Ryanair's Laudamotion airline said it would shut its main base in Vienna with the loss of more than 300 jobs in what could be the first of a series of closures across Europe.
The Irish airline took the decision after a trade union refused to accept lower wages and changed employment terms at the base.

Ryanair had threatened to close the base if it could not get agreement from Laudamotion employees. Chief Executive Michael O'Leary threatened to bring in Ryanair jets if staff did not accept a new labour agreement.

"Lauda deeply regrets the loss of more than 300 jobs for its A320-team and the closing of Lauda's A320 base in Vienna on Friday May 29," Lauda said.

Austria's Vida union refused to agree to the new contract which it said would leave some workers badly off with new employees paid less than Austria's minimum wage.

Ryanair has announced plans to cut at least 3,000 jobs, affecting about 17% of its workforce, and cut pay to deal with two years or more of difficult trading caused by the coronavirus crisis. O'Leary has said the company could close a number of bases across Europe to cut costs.

Ryanair bought Laudamotion in 2018 as it adopted more airline brands. The airline was founded by Formula 1 driver Niki Lauda, who died in 2019.

Lauda's Vienna operation is the base for 15 of the airline's 30 Airbus A320s. O'Leary has said he plans to keep Lauda's other bases in Stuttgart, Dusseldorf and Palma, Mallorca, open.