Ryanair told its pilots that if it was forced to negotiate with a pilots' trade union within five years of the pilots undergoing a training course, the pilots would have to pay the costs of their training, the High Court heard yesterday. The pilots also believed Ryanair had made an "open threat" of possible redundancy.

Capt John Goss, a senior pilot with the airline, said the offer by Ryanair in November 2004 to place pilots on a conversion training course for the Boeing 737-800 was regarded by senior pilots as punitive. The pilots believed they were being bullied and intimidated.

Capt Goss said the Dublin pilots were briefed by Ryanair management on November 4th last that the company had to make harsh decisions because of trading conditions.

The company had said the amount of money it was making per aircraft seat was down and that pilots should be grateful that they had employment, he said. The pilots voiced their anger at the way they were being treated.

David O'Brien, the director of flight and ground operations, had indicated an austerity situation and said the company was making certain changes in order to save the airline and preserve employment.

In proceedings before Mr Justice Budd, Capt Goss of Malahide, Co Dublin, claims Ryanair made serious allegations against him in a letter on December 10th, 2004, which stated he had intimidated other pilots at Stansted airport, warning them not to accept positions on the company's new aircraft, the Boeing 737-800, based in Dublin.

He claims the company alleged he failed to co-operate and it had initiated disciplinary proceedings against him.

In evidence yesterday, Capt Goss denied that he made threatening or intimidating telephone calls to pilots at Stansted or that he had warned pilots not to accept positions on the new aircraft to be based in Dublin. He was horrified at the allegations.

Capt Goss said that on April 1st, 2004, Dublin pilots received a document stating the company would not pay for pilots' medical examinations in the Mater Private Hospital (which they undergo every six months or annually to show they are fit to continue flying). The medical fee varied between €200 and €300.

The company had also reduced pilots' pension coverage by effectively putting less money into the pension fund. It almost halved the insurance cover (from €190,000 to €100,000) which a pilot might receive if he lost his flying licence for medical reasons. The company also outlined that the "loss-of-licence-insurance scheme" would terminate on March 31st, 2006 and that, from that date, it would be up to pilots to insure themselves.

Capt Goss said the airline management portrayed a difficult period ahead and difficult choices. Pilots voiced their abhorrence towards the way the company was making the changes with no attempt to hold discussions with the pilots.

Ryanair also wanted to brief pilots about the introduction of the Boeing 737-800 to Dublin. The airline said that initially it would be training four senior pilots. Staff were informed that if the company was forced into dealing with the pilots' association/union (Irish Airline Pilots' Association or IALPA), the pilots would be forced to pay for their training and that annual leave would only be given in "blocks of five days" - basically one week at a time.

The change also meant the pilots were "bonded" for five years following the training. This meant that, if they left within five years, they would have to pay €15,000 to the company. The pilots were also required to pay for their own accommodation while attending the training centre at East Midlands.

At a November 12th, 2004 meeting with management, the pilots received a letter stating: "It has been Ryanair policy - for so long as our people deal directly with the company - that pay will be better, pay increases higher and training costs shall be met by the company. We wish to remind you that should this policy be altered and Ryanair be compelled to engage in collective bargaining with any pilot association or trade union within five years of commencement of your conversion training, then you will be liable to repay the full training costs."

There was also the suggestion of possible redundancy when the "200" Boeing (the old aircraft) was withdrawn from service in Dublin. The eight senior pilots (including Capt Goss) who met management on November 12th, 2004 felt this was an "open threat" and an appalling approach to senior persons in the company. This was not negotiation but a take-it-or-leave-it situation. The eight staff got seven days to make up their minds.

In the meantime, the president of the IALPA wrote to the Labour Relations Commission formally complaining of victimisation of the eight pilots by the company.

"We regarded ourselves as being bullied and intimidated," he said. He had no difficulty moving to the new aircraft but opposed the company introducing punitive contracts.

Capt Goss said all the staff in Ryanair had worked hard to contribute to the airline, which was making reasonable profits to say the least. Why the company would cause hardship or operate to the detriment of staff was beyond him.

He said there had also been an issue about the maximum number of hours a pilot was allowed to fly in a given year. Ryanair had sought changes in how flight time was calculated.

After he had raised the issue on November 15th, 2004, he got a letter from Capt Shane McKeon, the deputy chief pilot, on November 16th, 2004, stating that Capt McKeon understood that Capt Goss had indicated he would not complete assigned duties.

Capt Goss said he regarded this letter as intimidatory and expressed his displeasure to Capt McKeon.

He had never indicated he would not work.

The hearing before Mr Justice Budd continues today.