Ryanair is to recognise pilot unions for the first time in its 32-year history in an attempt to prevent strikes in the run-up to Christmas.

Michael O’Leary’s refusal to recognise trade unions was at the heart of the low-cost airline business model he developed, transforming a small Irish regional airline into Europe’s largest carrier by passenger numbers.

The chief executive has frequently dismissed pilots’ complaints and insisted on pay negotiations being conducted through company-controlled representative committees at individual bases. He was once quoted as saying he would rather cut off his own hand than recognise unions. However, a shortage of pilots led the airline to cancel thousands of flights earlier this year, shifting more power to staff.

Pilots have complained of a toxic work atmosphere at the airline, although Ryanair claims it offers comparatively high pay. Although previous attempts to unionise have faltered in the past, a rapid mobilisation appears to have taken place after the rostering failure.

“Recognising unions will be a significant change for Ryanair, but we have delivered radical change before,” O’Leary said in a statement. “We hope and expect that these structures can and will be agreed with our pilots early in the new year.”

The company said it was urging the Irish pilots’ union, Ialpa, to call off threatened industrial action scheduled for Wednesday “so that our customers can look forward to travelling home for Christmas without the threat or worry of pilot strikes hanging over them”.

Ryanair said it had written to pilots’ unions in the UK, Ireland, Germany, Italy, Spain and Portugal, inviting each of them to talks to recognise the unions as the representative body for the airline’s pilots in each country.

Ialpa called for an immediate meeting with management “to clarify issues and make progress”.



The UK pilots union, Balpa, said it had written to Ryanair to accept its offer to discuss recognition, asking to include the TUC and the arbitration service Acas in talks. Balpa’s general secretary, Brian Strutton, said: “This change of heart and position by Ryanair is welcome.”

Frances O’Grady, the TUC general secretary, said: “We are hopeful that this indicates a broader move to Ryanair being a much more union-friendly company. We look forward to working alongside Balpa to achieve that aim.”

Should the strike take place, it would be the first in Ryanair’s history. The airline’s statement marked a dramatic change of tone from three days ago, when Ryanair said it would “face down” the threatened strike. The response is likely to be met with a considerable degree of caution by pilots and unions.



The move would give Ryanair some leeway to negotiate separately, as its bases are spread across Europe. Pilots had been working towards creating a pan-European union.



The airline said it would only recognise the unions as long as they established specific committees of Ryanair pilots. “Ryanair will not engage with pilots who fly for competitor airlines in Ireland or elsewhere,” it said.

O’Leary has long maintained, in the face of much evidence, that complaints about employment practices were not made by his staff.



The chief executive said he wanted to remove the threat of a strike. “If the best way to achieve this is to talk to our pilots through a recognised union process, then we are prepared to do so,” he said.

The largest Italian pilots’ union, Anpac, called off strike action that had been due to take place on Friday. Portuguese pilots are due to go on strike on Wednesday next week, while pilots in Germany had voted to take industrial action during the Christmas period over pay and conditions.

Ryanair’s chief people officer, Eddie Wilson, said there was no reason to think costs would increase as a result of recognising unions. However, analysts said it added uncertainty. Mark Simpson, an analyst at the stockbroker Goodbody, said: “It adds complexity, it adds uncertainty, and you can’t put a number on that.”

Cabin crew have also complained about working conditions at the airline, which has threatened crew with disciplinary action for missing onboard sales targets. Wilson said Ryanair would “wait and see what comes” before deciding about recognising unions in other parts of the company.

Ryanair’s share price fell almost 8% on Friday after its announcement.

• Follow Guardian Business on Twitter at @BusinessDesk, or sign up to the daily Business Today email here.