Jail threat lifted from Ryanair boss as pilot's case is settled

The High Court has lifted the threat of jail which had hung for the past two weeks over Ryanair's chief executive Michael O'Leary…

The High Court has lifted the threat of jail which had hung for the past two weeks over Ryanair's chief executive Michael O'Leary and two of the company's senior executives.

In light of the settlement earlier this week of proceedings brought by a Ryanair pilot Capt John Goss against the airline, Mr Justice Barry White yesterday acceded to a request from lawyers for Mr O'Leary and for Capt Goss not to deliver judgment in contempt proceedings which he had heard last month.

The judge had deferred giving a decision on those contempt proceedings pending the outcome of a challenge by Capt Goss to a disciplinary procedure brought against him.

That challenge was heard by Mr Justice Budd and settled last Wednesday.

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The contempt proceedings were against Ryanair, Mr O'Leary, the head of Ryanair flight operations David O'Brien, and Ryanair chief pilot Ray Conway.

In the contempt proceedings, Capt Goss had claimed the company and the three named executives were in contempt of a High Court order made by Mr Justice White requiring Ryanair to restore Capt Goss to flying duties.

When the contempt matter was before Mr Justice White yesterday, Richard Nesbitt SC, for the Ryanair defendants, handed in the terms of settlement in the proceedings settled on Wednesday.

The terms contained an agreement by Capt Goss that motions for attachment, committal and sequestration of Ryanair's assets on grounds of alleged contempt should be struck out with no order.

The terms also stated that Capt Goss consented to a request being made to Mr Justice White not to deliver his judgment on the contempt matter.

Mr Nesbitt said there had been a complete and final settlement between the parties and they had been able to reach an accommodation in what had been a hard fought piece of litigation. Both parties were asking that judgment not be given on the contempt matter.

Mr Justice White said that, had he come to the conclusion there had been a serious contempt, he would not agree to the application not to give judgment.

The judge said he had concluded it had been appropriate for Capt Goss to bring the matter to the court's attention.

However, the judge said he had not concluded there had been a contempt of court and, in the circumstances, he would accede to the application.

It emerged yesterday that the terms of settlement between Capt Goss and Ryanair contained a clause that Capt Goss's employment "as a pilot in command will continue", and that Ryanair would make a contribution of €200,000 towards his legal costs, plus VAT.

In respect of the company's offer of conversion training on its new aircraft, the Boeing 737-800, Capt Goss had accepted the offer in the terms of a company letter of November 17th, 2004.

Accommodation during training would be at Capt Goss's expense.

(In evidence during the hearing before Mr Justice Budd, Capt Goss had said senior pilots regarded the offer in that letter as punitive and believed they were being bullied and intimidated. Under the terms of the offer, the pilots argued they would be bonded for five years following training and, if they left within that period, they would have to pay €15,000 to Ryanair.)

The settlement also contained a statement that Ryanair would not initiate disciplinary/dismissal action against Capt Goss "in the absence of valid and substantial grounds as would apply to all Ryanair employees".

Captain Goss also agreed to withdraw all his claims of victimisation or intimidation.

Ryanair judicial review

In separate proceedings involving Ryanair yesterday, Mr Justice Michael Hanna reserved judgment on the airline's challenge to a Labour Court finding that it had jurisdiction to hear complaints by pilots against Ryanair.

The company is challenging a finding by the Labour Court that there is a trade dispute between Ryanair and the trade union IMPACT, which represents the Irish Airline Pilots Association.