RYANAIR IS to close its telesales operation in Dublin at the end of May with the loss of up to 40 jobs. The airline said the move was part of its "cost reduction programme" to combat high oil prices.
Analysts estimated that Ryanair could save up to €1.5 million a year from the closure. Called Ryanair Direct, the call centre opened in 1996 and employed up to 400 staff at its peak.
Its importance has dwindled in recent years as internet bookings have increased to represent 99 per cent of all Ryanair ticket sales.
Ryanair chief executive Michael O'Leary said the decision to close the Dublin unit was a "painful one" for the airline.
"Sadly, the operation is no longer viable or cost competitive against a backdrop of dwindling demand for phone bookings.
"Our existing Romanian and German call centres will continue to provide telesales services at 60 per cent lower costs than Ryanair Direct [in Dublin]. These cost savings must be made . . . in these difficult recessionary markets."
Mr O'Leary said the affected staff would be encouraged to apply for other vacancies within Ryanair. If they do not apply, or are not successful, they will be made redundant.
Ryanair said the staff - some of whom have about 10 years' service with the business - would receive statutory redundancy payments.
Earlier this week, Ryanair said it was implementing a pay freeze this year for its 36 senior executives and managers. This is expected to save the airline up to €10 million.
Ryanair's fuel bill in the 12 months to the end of March 2009 is forecast to hit about €1.3 billion due to soaring oil prices. This compares with a fuel bill of about €770 million in the current year.
