Europe's largest budget airline Ryanair today made peace with its pilots, agreeing to offer them share options in return for moderate wage growth and higher productivity.
Ryanair said it had agreed to a 15 per cent rise in basic pay over five years to 2005 and to grant each of the roughly 220 pilots over £100,000 (euro 127,000) worth of Ryanair shares at a strike price of euro 10 per share.
Ryanair shares ended yesterday at euro 11.59. The stock has been one of Europe's best-performing airline shares and has outperformed the London market by 130 per cent since January 1st last year.
"This new deal paves the way for further pilot recruitment and continued growth at Ryanair," Ryanair chief executive Mr Michael O'Leary said in a statement.
"It represents a 'win-win' for our pilots and the airline," he added.
He said the deal would ensure moderate increases in basic pay and improved productivity payments. "This pay deal will see all of Ryanair's pilots earnings rising over the next few years to over £100,000," he said.
Ryanair faced strike action in November after its Irish pilots accused the airline of trying to increase working hours. The one-day strike was called off after talks.
The pilots' union said at the time Ryanair had agreed to limit working hours to an average of 45 hours per week.
Reuters