Ryanair to close French base over employment court case
14.10.10
Ryanair has announced that it will close its base in the French city of Marseille because prosecutors refused to drop a case against it for illegal working practices. The French authorities have accused Ryanair of illegal working practices after the airline declared 120 employees in based France as working in Ireland, and paid them according to Irish tax rules.
Ryanair chief executive Michael O'Leary had previously threatened to pull out of the Southern French city and relocate the operation outside France if the case went ahead. Marseille has been Ryanair's Mediterranean hub since November 2006, with four aircraft and 120 staff based there. It is also a training base for the budget airline.
Ryanair said it will move the Marseille based planes to airports in Spain, Italy and Lithuania. The airline is axing 13 routes from the airport will will continue to operate ten routes from Marseille with aircraft and crew that are based elsewhere.
Mr O'Leary said: 'We are very disappointed at this decision by the French authorities to initiate proceedings against Ryanair's base in Marseille, which complies fully with EU regulations for mobile transport workers.'
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