Per a Reuters report, a wage agreement has finally been reached at Ryanair’s (RYAAY Quick QuoteRYAAY - Free Report) Austrian unit, Laudamotion. This collective wage deal that came through at the last minute is of paramount importance as it saves more than 300 employees’ jobs at its base in Vienna.

Notably, last month, Lauda announced that it was closing down its Vienna hub following its failure to arrive at a pay-related pact. Even management at the parent company Ryanair had confirmed that it will shut down the Vienna center of its loss-making unit lest the LaudaMotion employees do not accept the salary cuts.

The wage deal between Vida, a trade union representing workers in the transport and service industries in Austria, and the Austrian Chamber of Commerce was finally inked last week, which put an end to the long-standing negotiations between the concerned parties.

Even though the deal was successful, management at Laudamotion stated that some jobs will be lost and the fleet of Lauda's Airbus planes at the Vienna base will be reduced to 10 from 16 as the unit aims to cut costs. Per management, these cost synergies will enable Laudamotion to compete with the state-subsidized unit of German carrier Deutsche Lufthansa (DLAKY Quick QuoteDLAKY - Free Report) . Notably, Laudamotion’s entire fleet, currently grounded due to the coronavirus pandemic, will take to the skies starting Jul 1.

Zacks Rank & Other Key Picks

Ryanair currently carries a Zacks Rank #2 (Buy). Investors interested in the broader Zacks Transportation sector may also consider some other top-ranked stocks like Air Lease Corporation (AL Quick QuoteAL - Free Report) and Teekay Tankers Ltd. (TNK Quick QuoteTNK - Free Report) , both presently carrying the same Zacks Rank as Ryanair.  You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Long-term earnings (three to five years) growth rate for Air Lease and Teekay Tankers is estimated at 3.1% and 3%, respectively.

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