Ryanair 2006 Annual Report Download - page 24

Environmental (Continued)
Emissions trading (continued)
Ryanair and the Low Fares Airline Association (ELFAA) have
called on the European Commission to conduct a proper
cost/benefit analysis before proceeding with any legislative
proposals that could seriously damage the industry. A report
commissioned by ELFAA shows that aviation currently
accounts for less than 4% of emissions in the EU 15 but is
directly responsible for over 3 million jobs and over 220
billion in GDP. This contrasts with road transport which
accounts for 20% of European emissions and a fraction of
the economic benefits.
As noted above, Ryanair takes its environmental
responsibilities very seriously and will continue to improve
its efficiency and minimise emissions. We believe that the
introduction of ETS will not affect this and will only lead to
increased costs.
Fuel tax/emissions levy
Ryanair is fundamentally opposed to the introduction of any
fuel tax or emissions levy. Ryanair continues, to offer the
lowest fares in Europe, to make air travel affordable to
European consumers. Ryanair believes that the imposition of
a tax on fuel or emissions will not only increase airfares but
will most likely discourage new entrants into the market
resulting in less choice for consumers. This will have adverse
effects on the European economy generally.
As a company we believe in free market competition and
believe that the imposition of any of the above measures
would enable the traditional flag carriers (who have smaller
and older aircraft, lower load factors, a much higher fuel
burn per passenger, and who operate primarily into
inefficient congested airports) to achieve their objectives of
reducing competition. Furthermore the introduction of a fuel
tax or emissions levy on a European level only would distort
competition between airlines operating solely within Europe
and those operating also outside of Europe. We believe that
the introduction of such a tax/levy would also be
incompatible with international law.
Aircraft noise regulations
Ryanair is subject to international, national and, in some
cases, local noise regulations. EU and Irish regulations
require that all aircraft operated by Ryanair comply with
Stage 3 noise requirements since April 1, 2002. All of
Ryanair’s aircraft comply with these regulations. Certain
airports in the U.K. (including London Stansted and London
Gatwick) and continental Europe have established local noise
restrictions, including limits on the number of hourly or daily
operations or the time of such operations.
Group facilities
Environmental controls are generally imposed under Irish law
through property planning legislation specifically the Local
Government (Planning and Development) Acts of 1963 to
1999, the Planning and Development Act 2000 and
regulations made thereunder. At Dublin Airport, Ryanair
operates on land controlled by the Dublin Airport Authority
(DAA). Planning permission for Ryanair’s facilities has been
granted in accordance with both the zoning, and planning
requirements of Dublin Airport. There is also specific Irish
environmental legislation implementing applicable EU
Directives and Regulations, which Ryanair adheres to.
From time to time, noxious or potentially toxic substances
are held on a temporary basis within Ryanair’s engineering
facilities at Dublin airport and Glasgow Prestwick. However,
at all times Ryanair’s storage and handling of these
substances complies with the relevant regulatory
requirements. In our Glasgow Prestwick maintenance facility
all normal waste is removed under the Environmental
Protection Act of 1996 and Duty of Care Waste Regulations.
For special waste removal, Ryanair operates under the
special Waste Regulations 1998 (contaminated waste). At all
other facilities Ryanair adheres to all local and EU
regulations.
Code of Business Conduct and Ethics
In January 2004 the Board of Ryanair adopted a Code of
Business Conduct and Ethics. The code sets out the business
principles to be adopted by the group and its employees. In
addition to the Code of Business Conduct and Ethics the
employees are also bound by the business principles
contained in their terms and conditions of employment.
The management of the company are responsible to the
Board for ensuring adherence to the code. The code is
renewed annually and any amendments to the code must be
approved by the Audit Committee on behalf of the Board.
The code governs all aspects of the way the company
conducts its business including, matters relating to conduct
in the work environment, business activities, conflicts of
interest and compliance with laws and regulations. The code
also provides for confidential reporting, procedures for
employees and all employees must comply with the code.
(Continued)
Social, Environmental and Ethical report
24
ANNUAL REPORT & FINANCIAL STATEMENTS 2006