In the world of global business, and in a huge sector such as aviation which entails such intricate logistics to fly passengers all over the world, you would have thought that fairly mundane issues like when keys members of staff are due holidays would be relatively simple to calculate: Not so at Ryanair. For a company known for its no frills but dependable airline service, 2 days ago the firm revealed that it was cancelling almost 50 flights a day for possibly the next 6 weeks due to the mismanagements of Pilots’ holiday entitlements.
What does this mean? Thousands of passengers will likely be affected with a possible compensation bill totalling £20 million: not to mention the damaged reputation resulting from the issue. Previously the share price had been flying, making a new all-time high in August at €19.78: but the latest saga has seen the stock pull back to below €17, trading as low as €16.40 when the issue first came to light. Today it has recovered slightly, possibly on the hope that the damage has be contained. Certainly though investors will be left questioning how this happened in the first place.
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