Case Study Ryanair Unethical Practices

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Ryanair Unethical Practice 1 DETAILING THE UNETHICAL ACTIONS/BEHAVIORS IN THE ORGANISATION Although Ryanair are one of the most profitable airline companies in the world, they have also acquired the reputation as “The most hated airline in the world”. The following are some of the ethical situations that have led them to gaining such a title; Labour Law Violation: In 2014 Ryanair were fined €8.1 million by the European Commission for the hiring of French staff between 2007 and 2010 but using Irish contracts for the employment. This meant that instead of paying 45% social charge that is the standard in France the organization were paying 10.75% which is the standard in Ireland. Ryanair tried to argue the point that they worked for a company that had a registered company in Ireland along with spending most of their working days on Irish registered planes. The Judge in the case stated that it was “clear social dumping” and “an issue of unfair competition against other airlines that respect national legislation”. Sourcing Revenue from Outside the Airline: Ryanair earned €602 million in profits in 2014 but 20% of this was earned through sources outside of actual airline tickets. This is due to excessive charges on such items as name changing to boarding passes, boarding pass fees, luggage fees per kilo, credit card charges, reserved seat fees, bulky item fee such as wheelchairs, buggy’s, musical instruments along with items such as water, food and scratch cards. Cutting

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