Ryanair 2006 Annual Report Download - page 23

Social
The group’s aim is that employees understand the group’s
strategy and are committed to Ryanair. The motivation and
commitment of our people is key to our performance. The
group’s policy is that training, career development and
promotion opportunities will be available to all people. The
group remains committed to being an equal opportunities
employer regardless of nationality, race, gender, marital
status, disability, age and religious or political belief. The
group selects personnel on the basis of merit and capability,
providing the most effective use of resources. During the
year 343 of our people were promoted internally within the
group.
The group recognises the importance of effective
communication with its people. Our staff newsletter “The
Limited Release” is distributed to all staff ensuring that
employees are kept up to-date on the plans, issues and
challenges facing our industry, and daily news bulletins are
also issued on our internal TV network. Our Employee
Representative Committee (“ERC’s”) for each department
and our European Works Council provide a forum which
ensureall elected department representatives can consult
on current issues. Our IT department has developed an
Intranet site which gives added value to our communication
network.
The group has launched a number of employee share option
schemes. The group also obtained Revenue approval on July
4, 2003 for the new 2003 group scheme under which the first
tranche of shares will become exercisable in 2008.
All staff benefit from extensive travel concessions in Ryanair
and discounted travel with other carriers.
Environmental
Ryanair’s steady growth is being achieved in the most
environmentally sustainable way through investing in the
latest aircraft and engine technologies and the
implementation of certain operational and commercial
decisions that help to minimise the airline’s impact on the
environment. Ryanair is currently the industry leader in
terms of environmental efficiency and is constantly working
towards further improving its performance.
Technology
In December 2005 Ryanair completed its fleet replacement
and expansion programme commenced in 1999 with aircraft
with a market value of over 7bn. All of Ryanairs older
Boeing 737-200 aircraft were replaced with Boeing 737-800
“Next Generation” aircraft and Ryanair currently operates a
single aircraft type fleet of 103 aircraft with an average age
of just 2.4 years. Ryanair has a further 142 aircraft of this
type on order from Boeing and options on another 169. The
Boeing 737-800 has more seats than the Boeing 737-200 and,
hence, has lower fuel burn and emissions per seat. The
design of the new aircraft is aimed at minimising drag,
thereby further reducing fuel burn and noise levels. The
engines are also quieter and more fuel efficient.
Ryanair has also undertaken the process of installing
winglets on all of its existing aircraft and all future aircraft
will also be fitted with winglets. The installation of winglets
to Ryanair’s Boeing 737-800 “Next Generation” aircraft will
reduce fuel burn and CO2emissions by a further 2-4% and
will also further reduce noise emissions. The Company plans
to have its winglet programme on existing aircraft completed
by December 31, 2006.
Operational and commercial characteristics
Ryanair has distinctive operational and commercial
characteristics which further reduce the impact of its
operations on the environment:
- High seat density (189-seat, all economy configuration on a
Ryanair aircraft as opposed to 162 seat, two-class
configuration of the Boeing 737-800 “Next Generation”
aircraft used by traditional network airlines- reducing fuel
burn and emissions per seat kilometre flown);
- High load factors (reducing fuel burn and emissions per
passenger kilometre flown);
- Use of under-utilised secondary and regional airports
(limited use of holding patterns and short taxiing times-
reducing fuel burn and emissions; better utilisation of
existing infrastructure thereby reducing the need for new
airport infrastructure);
- Direct services as opposed to connecting flights (no need
for passengers to transfer at main hubs-reducing the number
of take-offs and landings per journey from 4 to 2, i.e.
reducing fuel burn and emissions per journey);
- No late night departures of aircraft (reducing noise level
emissions).
Emissions trading
The European commission is currently considering proposals
for including aviation in the European Emissions Trading
Scheme ‘(ETS)’. The effect of the ETS is likely to impose an
“emissions levy” on airlines, particularly those that have
already heavily invested in cleaner aircraft technology and
already engage in efficient operations as they will have no
further headroom to reduce emissions. We believe that this
additional cost burden on airlines will increase fares and
damage the competitiveness of the industry (see below).
Social, Environmental and Ethical Report 23
ANNUAL REPORT & FINANCIAL STATEMENTS 2006