Ryanair pulls out of Denmark, cuts routes after union dispute

COPENHAGEN, July 15 (Reuters) - Ireland (Other OTC: IRLD - news) 's Ryanair will move its aircraft, pilots and crews from Billund to alternative bases and cut some routes from the western Danish airport, it said on Wednesday after trade unions said they would go ahead with industrial action over working conditions.

The budget carrier's move marks the climax of a lengthy dispute that started when unions objected to Ryanair employment contracts before it began operating out of Copenhagen in March.

The unions, which Ryanair points out do not represent its workers, wanted a Danish collective agreement for the airline's staff and last month won a court ruling allowing them to take industrial action.

Ryanair pulled its single aircraft out of Copenhagen on Tuesday and said it would do the same at Billund on Friday if unions failed to call off their proposed action by 1500 GMT on Wednesday.

After pulling out of Billund, Ryanair will not have any bases in Denmark, rendering any strike action illegal. It will keep most of its routes out of Denmark but will fly with planes and staff based in Britain, Lithuania and Ireland.

Speaking at a press conference in Brussels before the confirmation of the closure, Ryanair Chief Executive Michael O'Leary defended the decision with typical vigour and a generous sprinkling of sarcasm.

"Our people don't want to be registered with Danish unions because the Danish collective agreement -- which has been such a success on world-leading Danish airlines like Cimber Air, Sterling, Maersk, all of whom bestride the aviation globe as international colossi -- would require us to cut their pay," O'Leary said.

"Our pay is higher than the Danish collective agreement, but we would have to then pay for things like their underwear -- they have an underwear allowance because that's what's in the Danish collective agreement -- and, frankly, our pilots and cabin crew would rather buy their own knickers as long as we pay them more money."

Ryanair said flights from Billund to the Greek islands Corfu and Crete would be scrapped from July 30 but other routes would continue through the summer. It had said previously that some other routes out of Billund would be cut during the winter, but no further mention of such plans was made on Wednesday.

(Reporting by Sabina Zawadzki; Additional reporting by Julia Fioretti in Brussels; Editing by David Goodman)