Ryanair reacts to French government by closing Marseille base
Wednesday, 15 Oct, 2010
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Ryanair is to kill off 13 Marseille routes from January after closing its base at the French airport.
The budget carrier has decided to close the base after pressure from the French government to pay income tax and social security on its 200 French pilots and cabin crew in France, rather than in Ireland as it does presently.
Ryanair has always claimed that this practice is perfectly legal in respect of the European Directive on Transport Workers.
Although the 13 routes are under threat, chief executive Michael O’Leary says he plans to operate ten of them using crew from elsewhere.
He said: “We are very disappointed at this decision by the French authorities to initiate proceedings against Ryanair’s base in Marseille, which complies fully with EU regulations for mobile transport workers.
“These are not French jobs, but rather Irish jobs on Irish aircraft, which are defined by EU regulations as Irish territory. All of these people pay their tax and social insurance, in accordance with EU regulations, in Ireland and they remain fully tax compliant.
“Sadly the loss of these 4 aircraft, 200 jobs and 13 routes at Marseille is the high price necessary to demonstrate that these are mobile Irish workers, which is why they are covered by the EU regulations for mobile transport workers; and not by a local French decree which Ryanair is currently appealing to the European Courts.
“This ill-judged legal action has therefore cost Marseille and France jobs, foreign investment and lost visitors in circumstances where our Marseille base fully complies with EU regulations for transport workers.
“Ryanair remains committed to Marseille Airport and in particular to its low cost MP2 Terminal. Ryanair will now be working with the management of Marseille Airport to try to grow other routes and traffic, on aircraft which are based overseas, particularly as Ryanair opens up bases elsewhere in Europe. Sadly the loser in all of this will be Marseille Airport, tourism and jobs in the Provence region.”
by Dinah Hatch
Dinah
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