The French newspaper Le Figaro has revealed that Ryanair has been under investigation for several months now in regards to illegal worker contracts in France. Like EasyJet recently, Ryanair is “accused of failing to declare workers”, about 120 employees. However, Ryanair could have to pay much more compensation than the orange airline.
Indeed,while EasyJet finally ended up paying 1, 5M Euros, Ryanair’s penalties could reach €4,5M. Throughout the process, in order to lower its costs and fees, Ryanair has been using the same strategy as easyJet, which is to take advantage of the lower protection and charges of British Law/Irish law.
It seems Ryanair’s streak of bad luck is not over. Ryanair is also under investigation regarding public subsidies, an Irish Times article reported just last week end. Gerry Byrne points tells the truth about the Ryanair business model, exposing just how Ryanair gets such important financial support from publics authorities.
In France, Air France has already filed a complaint against Ryanair, and it is now Lufthansa’s turn to express its discontent over the Lubeck public authorities having signed a new two-year agreement with the Irish airline. The amount of subsidies however has not been published. Ryanair is currently under investigation in relation to 7 airports over what Lufthansa calls “questionable subsidies”.