French court fines Ryanair €8mn in Irish contracts scandal

Ryanair has been fined EUR8million (USD10.8million) by a French court after it was found guilty of acting illegally when it employed more than 120 staff on Irish contracts at its former Marseilles hub between 2007 and 2010. 

The Irish LCC was ordered to pay a EUR200'000 fine, but the court denied a request to fine it the equivalent value of the four B737-800 WIN. aircraft based at the hub. Additionally, Ryanair will also have to pay EUR4.5million in backdated social charges constituting EUR3million in pension contributions, as well as EUR450'000 in social insurance. 

In a statement, Ryanair said it would appeal the ruling and characteristically took aim at both Brussels and Paris claiming the suit was nothing more than a move to protect Air France. 

On the judgement, Ryanair’s Robin Kiely said: “Ryanair will study today’s ruling in detail, and will be lodging an early appeal. Since all of our people operating to/from Marseille between 2007 and 2010 have already paid their social taxes and pension contributions in Ireland, in full compliance with Irish and EU employment regulations, we do not believe that either Ryanair or our people can be forced to double pay these contributions a second time in France."

Source: CH-Aviation