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Ryanair shares slide on safety concerns

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Ryanair shares slide on safety concerns

Ryanair (NASDAQ:RYAAY) , Europe’s largest budget airline by revenue, is down by more than 3.7% in pre-market trading to $51.60 per share as safety concerns make headlines across the globe.

The results of a safety survey commissioned by the Ryanair Pilot Group revealed the company may not be focusing adequate attention of passenger safety. Up until this point the company has claimed within its shareholder statements passenger safety was its top priority, however, it was revealed the company had threatened its pilots within a company memo to keep their mouths shut

Any pilot signing a“so-called safety petition” could be immediately released as a result of misconduct. Ryanair Pilot Group, which is seeking to have the airline’s pilots represented by trade unions in negotiations on pay and working conditions, released the following data from the report:

  • More than 50% of pilots more were reluctant to raise safety issues with external bodies such as the Irish Aviation Authority
  • More than 90% of pilots, who participated in the survey, stated they believed the airline was trying to suppress pilots from raising safety concerns
  • Just under 70% of respondents said they no longer continued to have confidence in the safety reporting system of Ryanair after receiving the news of possible dismissal
  • Nearly 90% called on regulators to take action against the airline for issuing the memo.

These safety concerns follow a number of safety scares of late. Ryanair had to declare a series of fuel emergencies that have raised questions over the company’s operating practices. The Spanish air accident investigators have determined the company has operated without passenger safety in priority previously. The organization stated that “the company’s fuel savings policy, though it complies with the minimum legal requirements, tends to minimize the amount of fuel with which its airplanes operate and leaves none for contingencies below the legal minimums.” In the coming weeks it will be interesting to see if the company changes its safety practices in order to ensure to the public their airline is passenger friendly.

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