In the annual report of Ryanair that was revealed today, Michael O’Leary, the chief executive of the budget airline, has waived his hefty annual bonus for 2017-2018 that is amounting to almost €1 million (£890,000) following a flight cancellation crisis that occurred in 2017.
Last year, a pilot scheduling mix up resulted to the cancellation of almost 20,000 flights which affected more than 700,000 of the passengers of the airline. Despite the cancellation of the flights and a labour dispute that involved the pilot scheduling, Ryanair still announced record profits in the previous fiscal year.
Reportedly, the boss of the company waived his bonus as a result of the chaos, which stood at €950,000 last year.
However, he still received a basic salary that amounted to €1.06 million and share-based compensation that amounted to €1.25 million.
The said crisis resulted in the exit of the Michael Hickey, the chief operations officer of the airline last October. It also resulted to a U-turn at Ryanair which began negotiations with trade unions in various countries. The carrier has since entered into agreements with numerous unions, even though discussions still continue to be tricky in some territories.
This year, the passengers of Ryanair have also experienced disruption due to the strikes that were organised by its cabin crew, ground staff, and pilots over pay and working conditions. Cabin crew in Portugal, Belgium, and Spain organised a coordinated two-day strike as part of the Europe-wide campaign in which they demanded some action on 34 issues, which included “a fair living wages that reflects the work we do.”
The airline said that it could cut more than 300 jobs in Ireland as an outcome of the strikes which it said had affected booking and consumer confidence.
Ryanair is reducing its fleet that its based in Ireland from 30 aircraft down to 24. IT will be investing in its Polish fleet instead to increase it to 10 aircraft.
Flight cancellations have continued into the current financial year with approximately 150,000 passengers having their flights grounded during the past week alone.