Ryanair has been charged with illegal work practices after legal proceedings were brought by French prosecutors (RTE News/AFP, 28-Sep-2010). Concerns were voiced in May-2010 about the employment contracts and tax arrangements of French employees at the airline’s Marseille base, with Ryanair claiming employment takes place on Irish-registered aircraft, which are Irish, not French, property and territory. The charges relate to banning concealed employment and preventing workplace councils from operating and preventing access to unions. Ryanair, which has previously threatened to close its Marseille base if court proceedings challenge their employment practices, has taken its case to the European Court of Human Rights.
Ryanair charged by French court over employment practices
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Ukraine: traffic recovery prompts Ryanair to join Wizz Air in LCC growth. Ukraine Int'l also expands
Two announcements by leading LCCs in quick succession may mark a significant development in Ukraine's aviation market. One came on 13-Mar-2016 from Wizz Air, the largest low cost airline in Eastern/Central Europe; the other on 15-Mar-2016 from Ryanair, the largest LCC (and largest airline) in all Europe.
Both expect opportunity in Ukraine's very low levels of air travel and low LCC seat share. Wizz Air, already Ukraine's leading low cost airline, will add four more new routes in summer 2017, to the four previously announced. Ryanair will enter Ukraine with 11 routes, adding competitive tension to the emerging low fares market there. The battle between the two for supremacy in Eastern/Central Europe opens up a new front.
Meanwhile, Ukraine's air traffic levels are enjoying a recovery from the slump of 2014 and 2015 caused by major geopolitical disruption and a severe recession. Passenger numbers jumped 21% in 2016.
The country's flag carrier and biggest airline, Ukraine International Airlines, has taken part in the traffic growth, but will need to ensure it can do this profitably after a period of losses. Risks remain, but the conditions are in place for further growth in Ukraine's air traffic.
Europe's big five airline groups embrace disruption via digital innovation; some more than others
Many of Europe's leading airline groups are acknowledging the importance of establishing dedicated incubator and/or accelerator programmes to innovate in digital technology. On 24-Apr-2017 IAG announced that it had invested in two new technology companies – Esplorio and Vchain Tech. These are the first two investments under its Hangar 51 accelerator programme in partnership with L Marks, an innovation specialist and early stage investor.
IAG's investments followed easyJet's announcement earlier this year that its partnership with the incubator Founders Factory had selected two travel startups for its accelerator programme. The Lufthansa Group established its Innovation Hub in 2014 and started a new partnership with Californian startup investor ‘Plug and Play’ in 2016. While these three groups chose external partners, Ryanair has its inhouse Labs team, set up in 2014. Air France-KLM is alone among Europe's big five airline groups in not having a distinct and dedicated digital incubator/accelerator programme, but it has recognised digital's strategic importance.
Much of the airlines' rhetoric concerning these developments suggests that they are trying to associate themselves with the forces of disruption, but this will take more than rhetoric. CAPA has argued previously that the airline industry has been slow to prepare for disruption, but some are at least making a start.