Restructuring events
European Restructuring Monitor (ERM)
The restructuring events database contains factsheets with data on large-scale restructuring events reported in the principal national media and company websites in each EU Member State. This database was created in 2002.
Ryanair, an Irish-based low-cost airline, is to dismiss 601 workers, and to close its bases in the Alghero (Sardinia), Pescara (Abruzzo) and Crotone (Calabria) airports.
According to the company, the job cuts are due to increase of airport taxes by about 40% (from €6,50 to €9 per passenger). The increase was set by the government with effect from 1 January 2016 in order to increase the resources devoted to the Special Flight Transport Fund, the sectoral unemployment fund. The management claimed that the additional taxes will actually be used to subsidise Alitalia's redundant workers (see AlitaliaIT-2014 and Alitalia Società Aerea ItalianaIT-2015).
The restructuring involves 225 layoffs in Alghero, and the closure of eight routes; 188 layoffs in Pescara, with the closure of five routes; and 188 layoffs in Crotone, where the airport will shut down as Ryan Air operates its only three flight connections.
At the same time Ryanair will open nine new routes from Malpensa and Orio al Serio Airport (Milan) and four other routes from the Ciampino and Fiumicino (Rome) airports.
Trade unions are concerned about the wider implications for employment, which are expected to affect the tourism sector as well.
Eurofound (2016), Ryanair, Closure in Italy, factsheet number 86457, European Restructuring Monitor. Dublin, https://apps.eurofound.europa.eu/restructuring-events/detail/86457.