O'Leary climbs down over union recognition at Buzz

Michael O'Leary, the abrasive chief executive of Ryanair, is expected to give in to pressure and negotiate with trade unions over the future of Buzz, the airline it is buying for £15m.

The move is a climbdown for Mr O'Leary, who earlier this month threatened to close Buzz down if pilots went on strike over pay, conditions and union recognition.

It could also pave the way for unions to gain recognition throughout Ryanair, something Mr O'Leary has always opposed. This week Ryanair is expected to reveal what it is going to do with Buzz when it completes its purchase next month.

After talks with the Civil Aviation Authority, Ryanair is understood to have agreed to continue running Buzz as a separate business, under its existing UK air travel operators licence, for at least a year.

A Ryanair spokesman would not confirm these plans but said the company would write this week to all Buzz's employees detailing its proposals and asking for talks. He said that if the employees wanted to be represented by the union, Mr O'Leary would talk to the union.

Jim McAuslan, the general secretary of Balpa, the pilots' union, wrote to Mr O'Leary earlier this month calling for talks. Balpa voted for a strike at Buzz in November, when the airline was still owned by KLM, the Dutch carrier.

If Ryanair continues to run Buzz as it is, then it will not be integrated into Ryanair until April next year. That will be only three months before the next vote on union recognition is due to take place at Ryanair.

When a vote was last taken, a majority decided against union recognition. However, a Balpa spokesman said the union had seen many Ryanair pilots join since then and a majority at the airline were now members. "We are confident we would win a vote if it was taken today," said the spokesman.

Ryanair operates under Irish regulations which allow pilots to fly up to 22 per cent more hours than UK rules.