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RYANAIR HOLDINGS plc Annual Report & Financial Statements 2010
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International Scheduled Passengers
THE WORLD’S
FAVOURITE AIRLINE

Table of contents

  • Page 1
    THE WORLD'S FAVOURITE AIRLINE 60 50 40 30 20 10 International Scheduled Passengers RYANAIR HOLDINGS plc Annual Report & Financial Statements 2010

  • Page 2
    PAX 60 50 40 30 20 10 60 50 40 30 20 10 RYA '10 300 250 200 150 100 50

  • Page 3
    ... Review Critical Accounting Policies Directors, Senior Management and Employees Major Shareholders and Related Party Transactions Financial Information Additional Information Quantitative and Qualitative Disclosures About Market Risk Controls and Procedures Consolidated Financial Statements Company...

  • Page 4
    ...2009, exceptional items of (a) accelerated depreciation of 151.6m on aircraft disposals in financial years 2009 and 2010 and (b) a further 1222.5m write down of our investment in Aer Lingus. See reconciliation of profit/(loss) for the financial year to adjusted profit for the financial year on pages...

  • Page 5
    2010 Key Statistics Scheduled passengers Fleet at period end Average number of employees Passengers per average no. of employees 66.5m 232 7,032 9,457 2009 58.6m 181 6,369 9,195 Change +14% +28% +10% +3% 3

  • Page 6
    ...and small airports across Europe. The new routes and bases launched this year have delivered lower charges, which have resulted in airport and handling unit costs falling by 9%, despite the excessive (up to 40%) increase in charges at Dublin airport. Increased profitability has seen our cash in hand...

  • Page 7
    ...appointment to the Board of Ryanair, subject to shareholder approval at the AGM. Both Charlie's and Declan's extensive commercial and financial experience will further strengthen the Ryanair Board. Ryanair's performance over the past year in delivering unit cost reduction, strong cash generation and...

  • Page 8
    ...traffic growth, market share, unit costs, profits, new route and base development, confirm that Ryanair continues to successfully roll out our unique low fares formula across Europe for the benefit of our passengers, our people and our shareholders. Our prices and costs Our traffic last year grew 14...

  • Page 9
    ...refusing to hedge when oil was $140 a barrel, or refusing to order 200 new aircraft from Boeing last year (because of a disagreement over delivery terms), because we believe that these decisions are what shareholders would wish us to do. The Board has announced in recent months that Ryanair plans to...

  • Page 10
    ... ...Total operating revenues -continuing operations Operating expenses Staff costs ...Depreciation...Fuel and oil ...Maintenance, materials and repairs...Aircraft rentals ...Route charges ...Airport and handling charges...Marketing, distribution & other ...Total operating expenses Operating profit...

  • Page 11
    ... exchange rates. Total revenue per passenger as a result decreased by 11%, whilst the Load Factor increased by 1 point to 82% during the year. Total operating expenses fell by 8% to 12,586.0m, primarily due to lower fuel prices, offset by the higher level of activity and increased operating costs...

  • Page 12
    ... audited financial statements of Ryanair Holdings plc, for the year ended March 31, 2010. The Corporate Governance Statement which is set out on pages 13 to 24 form part of this Directors' Report. Review of business activities and future developments in the business The Company operates a low fares...

  • Page 13
    ...in the best interests of the shareholders. Details of total remuneration paid to senior key management (defined as the executive team reporting to the Board of Directors) is set out in Note 26 on page 187 of the consolidated financial statements. Executive director's service contract Ryanair entered...

  • Page 14
    ...consolidated financial statements. Auditor In accordance with Section 160(2) of the Companies Act 1963, the auditor KPMG, Chartered Accountants, will continue in office. Annual General Meeting The Annual General Meeting will be held on September 22, 2010 at 10am in the Radisson Hotel, Dublin Airport...

  • Page 15
    ...the new Combined Code for the current financial year commencing on April 1, 2010. The Board of Directors Roles The Board of Ryanair is responsible for the leadership, strategic direction and overall management of the Group. The Board's primary focus is on strategy formulation, policy and control. It...

  • Page 16
    ... in this industry, and significant public company experience. Historically, the Company has always separated the roles of Chairman and Chief Executive for the running of the business and implementation of the Board's strategy and policy. Years on board 13 22 9 9 14 9 7 7 0 0 Air Safety Chair - Name...

  • Page 17
    ... had a beneficial shareholding in the Company of 13,230,671 ordinary shares, equivalent to 0.89% of the issued share capital. Having considered this shareholding in light of the number of issued shares in Ryanair Holdings plc and the financial interest of the director, the Board has concluded that...

  • Page 18
    ...page 178 of the consolidated financial statements. The Board has adopted The Model Code, as set out in the Listing Rules of the Irish Stock Exchange and the UK Listing Authority, as the code of dealings applicable to dealings in Ryanair shares by directors and relevant Company employees. The code of...

  • Page 19
    ... reporting judgments contained in them; • reviewing the interim and annual financial statements before submission to the Board; • reviewing the effectiveness of the Group's internal financial controls and risk management systems; • monitoring and reviewing the effectiveness of the Company...

  • Page 20
    ... with the United States Securities and Exchange Commission; • The Committee regularly reviews Turnbull Risk management reports completed by management; • The Committee conducts an annual assessment of the operation of the Group's system of internal control based on a detailed review carried out...

  • Page 21
    ... are available on the Company's website www.ryanair.com. The terms of Reference of the Nomination committee are reviewed annually. On May 28, 2010, upon recommendations of the Nomination Committee, the Board appointed Charles McCreevy and Declan McKeon to the positions of non-executive directors...

  • Page 22
    ... its shareholders following the release of quarterly and annual results directly via road shows, investor days and/or by conference calls. The Chief Executive, senior financial, operational, and commercial management participate in these events. During the year ended March 31, 2010 the Company held...

  • Page 23
    ... are sent to shareholders at least twentyone working days before the meeting. The Company's Annual Report is available on the Company's website, www.ryanair.com. The 2010 Annual General Meeting will be held at 10am on September 22, 2010 in the Radisson Hotel, Dublin Airport, Co Dublin, Ireland. All...

  • Page 24
    ... a clearly defined organisational structure along functional lines and a clear division of responsibility and authority in the Company; • a comprehensive system of internal financial reporting which includes preparation of detailed monthly management accounts, providing key performance indicators...

  • Page 25
    ... Directive Information regarding rights and obligations attached to shares are set forth in Note 15 on pages 171 to 173 of the consolidated financial statements. Shares in the Ryanair employee share schemes carry no control rights and shares are only issued (and gain voting rights) when options are...

  • Page 26
    ... in advance and any shares acquired by exercise of the options should be held until at least one year after the non-executive director leaves the board. In accordance with the Combined Code, the Company sought and received shareholder approval to make certain stock option grants to its nonexecutive...

  • Page 27
    ... elected to comply with IFRSs as issued by the International Accounting Standards Board (IASB). The consolidated and Company financial statements are required by law and IFRSs as adopted by the EU, to present fairly the financial position of the Group and the Company and the performance of the Group...

  • Page 28
    ... confirm that to the best of their knowledge and belief these consolidated financial statements give a true and fair view of the assets, liabilities and financial position of the Group at March 31, 2010 and of its profit for the year then ended. On behalf of the board D. Bonderman Chairman July 20...

  • Page 29
    ... the Company's compliance with the nine provisions of the 2008 Financial Reporting Council Combined Code specified for our review by the Listing Rules of the Irish Stock Exchange, and we report if it does not. We are not required to consider whether the Board's statements on internal control cover...

  • Page 30
    ... agreement with the books of account. In our opinion, the information given in the Directors' Report is consistent with the financial statements. The net assets of the Company as stated in the Company balance sheet on page 188 are more than half of the amount of its called up share capital, and, in...

  • Page 31
    ... Reserve Rate") on March 31, 2010. The Federal Reserve Rate for euro on July 16, 2010 was 11.00=$1.2919 or $1.00=10.7740. See "Item 3. Key Information-Exchange Rates" for information regarding historical rates of exchange relevant to the Company, and "Item 5. Operating and Financial Review and...

  • Page 32
    ... aircraft availability, costs associated with environmental, safety and security measures, terrorist attacks, actions of the Irish, U.K., EU and other governments and their respective regulatory agencies, fluctuations in currency exchange rates and interest rates, airport handling and access charges...

  • Page 33
    ...39 Item 4. Information on the Company ...53 Introduction ...53 Strategy...54 Route System, Scheduling and Fares...58 Marketing and Advertising...59 Reservations on Ryanair.com ...59 Aircraft ...60 Ancillary Services ...62 Maintenance and Repairs ...63 Safety Record ...64 Airport Operations...65 Fuel...

  • Page 34
    ... Offer and Listing...112 Trading Markets and Share Prices...112 Item 10. Additional Information ...115 Description of Capital Stock...115 Options to Purchase Securities from Registrant or Subsidiaries...115 Articles of Association ...115 Material Contracts ...117 Exchange Controls...117 Limitations...

  • Page 35
    ... Management and Advisers Not applicable. Item 2. Offer Statistics and Expected Timetable Not applicable. Item 3. Key Information THE COMPANY Ryanair operates a low-fares, scheduled passenger airline serving short-haul, point-to-point routes in Europe and Morocco from its bases in Dublin, London...

  • Page 36
    ... Share (U.S. cents)/(euro cent)(b) Ryanair Holdings diluted earnings (loss) per Ordinary Share (U.S. cents)/(euro cent)(b) Balance Sheet Data: 2010(a) Cash and cash equivalents ...Total assets ...Long-term debt, including capital lease obligations ...Shareholders' equity ...Issued share capital...

  • Page 37
    Cash Flow Statement Data: 2010(a) Net cash inflow from operating activities Net cash (outflow) from investing activities...Net cash inflow from financing activities Increase (decrease) in cash and cash equivalents ...$1,178.8 $(2,095.3) $774.1 $(142.4) Fiscal year ended March 31, 2010 2009 2008 2007...

  • Page 38
    ... euro; (ii) the U.K. pound sterling and the euro; and (iii) the U.K. pound sterling and the U.S. dollar. Such rates are provided solely for the convenience of the reader and are not necessarily the rates used by the Company in the preparation of its consolidated financial statements included in Item...

  • Page 39
    ... for euro. (b) The average of the relevant exchange rates on the last business day of each month during the relevant period. (c) Based on the composite exchange rate as quoted at 5 p.m., New York time, by Bloomberg. (d) Based on the Federal Reserve Rate for U.K. pounds sterling. As of July 16, 2010...

  • Page 40
    ... the terms used in this table, see the Glossary in Appendix A. Operating Data: Average Yield per Revenue Passenger Mile ("RPM") (1) ...Average Yield per Available Seat Miles ("ASM") (1) ...Average Fuel Cost per U.S. Gallon (1) ...Cost per ASM (CASM) (1) ...2010 Fiscal Year ended March 31, 2009 2008...

  • Page 41
    ... the Company's financial condition and results of operations. In addition, the recent strengthening of the U.S. dollar against the euro could have an adverse effect on the cost of buying fuel in euro. As of July 19, 2010, Ryanair had hedged 88% of its forecasted fuel-related dollar purchases against...

  • Page 42
    ... March 2010. In particular, the Company announced its intention to reduce its London (Stansted)-based aircraft from the then current 40 to 24 during the aforementioned period, and also reduce by 30% the number of weekly Ryanair flights to and from the airport. The Company announced at that time that...

  • Page 43
    ... passengers occupying otherwise unsold seats. Both low-fare and traditional airlines sometimes offer low fares in direct competition with Ryanair across its route network as a result of the liberalization of the EU air transport market and greater public acceptance of the low-fares model. Increased...

  • Page 44
    ... expansion plans, see "Item 4. Information on the Company-Aircraft" and "Item 5. Operating and Financial Review and ProspectsLiquidity and Capital Resources." There can be no assurance that this planned expansion will not outpace the growth of passenger traffic on Ryanair's routes or that traffic...

  • Page 45
    ... strain existing management resources and related operational, financial, management information, and information technology systems, including Ryanair's Internet-based reservation system, to the point that they may no longer be adequate to support Ryanair's operations. This would require Ryanair to...

  • Page 46
    ... winter 2008), as a result of rising airport charges and the introduction of an Air Travel Tax of 110 on all passengers departing from Irish airports on routes longer than 300 kilometers. Excluding the planned reduction by winter 2010, these reductions have been carried out. See "Item 4. Information...

  • Page 47
    ... the market that it would not proceed to seek EU approval for the new bid unless the shareholders agreed to sell their stakes in Aer Lingus to Ryanair. However, the Company was unable to secure the shareholders' support, and accordingly on January 28, 2009, it withdrew its new offer for Aer Lingus...

  • Page 48
    ... Company's business, operating results, and financial condition. The Company Faces Risks Related to its Internet Reservations Operations and its Announced Elimination of Airport Check-in Facilities. Approximately 99% of Ryanair's flight reservations are made through its website. Although the Company...

  • Page 49
    ... all passengers have been required to use Internet check-in. Internet check-in is part of a package of measures intended to improve service by reducing airfares as well as reducing check-in lines. See "Item 4. Information on the Company-Reservations/Ryanair.com." The Company has deployed this system...

  • Page 50
    ...conditions, such as the conditions persisting as of the date hereof, also tend to impact Ryanair's ability to raise fares to counteract increased fuel and other operating costs. Total demand for European air travel has weakened between the period of the latter half of 2008 and the first half of 2010...

  • Page 51
    ... Ryanair's financial condition and results of operations. EU Regulation on Passenger Compensation Could Significantly Increase Related Costs. The EU has passed legislation for compensating airline passengers who have been denied boarding on a flight for which they hold a valid ticket (Regulation...

  • Page 52
    ... the United States or EU nations or any related economic downturn may have a material adverse effect on demand for air travel and thus on Ryanair's business, operating results, and financial condition. See also "-Risks Related to the Company-Further Terrorist Attacks in London and Other Destinations...

  • Page 53
    ... United States Had a Severe Negative Impact on the International Airline Industry" above. Substantial claims resulting from an accident in excess of related insurance coverage could have a material adverse effect on the Company's results of operations and financial condition. Moreover, any aircraft...

  • Page 54
    ...Ownership of Ryanair Holdings' Ordinary Shares by Non-EU Nationals, and the Company Has Instituted a Ban on the Purchase of Ordinary Shares by Non-EU Nationals. EU Regulation No. 1008/2008 requires that, in order to obtain and retain an operating license, an EU air carrier must be majority-owned and...

  • Page 55
    ..., levels of lost baggage, and rates of flight cancellations. The address of Ryanair Holdings' registered office is: c/o Ryanair Limited, Corporate Head Office, Dublin Airport, County Dublin, Ireland. The Company's contact person regarding this Annual Report is: Howard Millar, Chief Financial Officer...

  • Page 56
    ... higher fares charged on flights with higher levels of demand and for bookings made nearer to the date of departure. Ryanair also periodically runs special promotional fare campaigns. See "-Route System, Scheduling and Fares-Low and Widely Available Fares" below. Customer Service. Ryanair's strategy...

  • Page 57
    ... flown by pilots and flight attendants within limits set by industry standards or regulations fixing maximum working hours. Customer Service Costs. Ryanair has entered into agreements on competitive terms with external contractors at certain airports for ticketing, passenger and aircraft handling...

  • Page 58
    ... reservation system. Hertz pays a per-passenger fee to Ryanair. Ryanair also sells cruises online and bus and rail tickets onboard its aircraft and through its website. Costa Cruises handles all cruise bookings made via Ryanair's website and pays Ryanair a per-passenger fee. For the 2010 fiscal year...

  • Page 59
    ... at Dublin Airport to 17 by summer 2009, 16 by winter 2009, 15 by summer 2010 and 12 by winter 2010 (down from 22 in summer 2008 and 20 in winter 2008), as a result of rising airport charges and the introduction of an Air Travel Tax of 110 on all passengers departing from Irish airports on routes...

  • Page 60
    ... the Company offered approximately 1,300 scheduled short-haul flights per day serving 155 airports throughout Europe and Morocco, and flying approximately 1,100 routes. The following table lists Ryanair's top ten routes during the 2010 fiscal year by number of passengers, as well as the date service...

  • Page 61
    ... regularly contacts people registered in its database to inform them about promotions and special offers via e-mail. RESERVATIONS ON RYANAIR.COM Passenger airlines generally rely on travel agents (whether traditional or online) for a significant portion of their ticket sales and pay travel agents...

  • Page 62
    ...the purchase of 100 new Boeing 737-800 series aircraft (with an option to purchase an additional 100) for delivery during the period 2013 to 2015. Although the Company had reached agreement with Boeing in relation to the aircraft price it was unable to conclude negotiations regarding other terms and...

  • Page 63
    ... likely to be more widely available on favorable terms than similar resources for other types of aircraft. Management believes that its strategy of having reduced its fleet to one aircraft type enables Ryanair to limit the costs associated with personnel training, the purchase and storage of spare...

  • Page 64
    ...-flight sale of beverages, food, and merchandise. See "Item 5. Operating and Financial Review and Prospects-Results of Operations-Fiscal Year 2010 Compared with Fiscal Year 2009-Ancillary Revenues" for additional information. As part of its non-flight scheduled and Internet-related services Ryanair...

  • Page 65
    ... October 2010, which should accommodate some heavy maintenance work. Ryanair opened a five-bay hangar and stores facility at its London (Stansted) airport base in October 2008 to allow Ryanair to carry out additional line maintenance on its expanding fleet. This facility also incorporates two flight...

  • Page 66
    ... at Glasgow (Prestwick), London (Stansted) and Frankfurt (Hahn). See "Item 3. Key Information-Risk Factors-Risks Related to the Company-The Company Is Dependent on External Service Providers." SAFETY RECORD Ryanair has not had a single passenger or flight crew fatality in its 25-year operating...

  • Page 67
    ... into similar agreements in any new markets it may enter. See "Item 3. Key Information-Risk Factors-Risks Related to the Company-The Company Is Dependent on External Service Providers." During 2009, Ryanair introduced Internet check-in for all passengers and also introduced kiosks at certain bases...

  • Page 68
    ... at Dublin Airport to 17 by summer 2009, 16 by winter 2009, 15 by summer 2010 and 12 by winter 2010 (down from 22 in summer 2008 and 20 in winter 2008), as a result of rising airport charges and the introduction of an Air Travel Tax of 110 on all passengers departing from Irish airports on routes...

  • Page 69
    ... Risk-Fuel Price Exposure and Hedging" for additional information on recent trends in fuel costs and the Company's related hedging activities, as well as certain associated risks. See also "Item 5. Operating and Financial Review and Prospects-Fiscal Year 2010 Compared with Fiscal Year 2009-Fuel and...

  • Page 70
    ... de-ice aircraft, have increased significantly in recent years as the Company's route network and number of sectors flown have increased. Fiscal Year ended March 31, 2009 530.5 47,102.5 0.011 1,247.3 12.351 43.8% 2010 Scheduled fuel consumption (millions of U.S. gallons)...Available seat miles (ASM...

  • Page 71
    ... of Certain Rules Relating to Transportation by Air, as amended by the Montreal Convention of 1999. Ryanair has extended its liability insurance to meet the requirements of the legislation. See "Item 3. Key Information-Risk Factors-Risks Related to the Airline Industry-The Company Faces the...

  • Page 72
    ... an operating license. See "Item 10. Additional Information-- Limitations on Share Ownership by Non-EU Nationals." See also "Item 3. Risk Factors--Risks Related to Ownership of the Company's Ordinary Stock-EU Rules Impose Restrictions on the Ownership of Ryanair Holdings' Ordinary Shares by Non-EU...

  • Page 73
    ...). The current Manual, Issue 3 Revision 6, was approved by the IAA on March 4, 2010. Department of Transport. The Department of Transport ("DOT") is responsible for implementation of certain EU and Irish legislation and international standards relating to air transport (e.g., noise levels, aviation...

  • Page 74
    ... airport charges, while the scope that exists within this Directive to address abuses of their dominant positions by Europe's larger airports is very limited. See "Item 7. Major Shareholders and Related-Party Transactions Other Financial InformationLegal ProceedingsEU State Aid-Related...

  • Page 75
    ... 1, 2002. All of Ryanair's aircraft currently 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...

  • Page 76
    ... Boeing 737-800 "next generation" aircraft, and Ryanair now operates a single-aircraft-type fleet of Boeing 737-800 "next generation" aircraft with an average age of only 2.94 years. The design of the new aircraft is aimed at minimizing drag, thereby reducing the rate of fuel burn and noise levels...

  • Page 77
    ... many more slots allocated at present than Ryanair. Slot values depend on several factors, including the airport, time of day covered, the availability of slots and the class of aircraft. Ryanair's ability to gain access to and develop its operations at slot-controlled airports will be affected by...

  • Page 78
    .... in the United States. During the period between 1992 and 1994, Ryanair expanded its route network to include scheduled passenger services between Dublin and Birmingham, Manchester and Glasgow (Prestwick). In 1994, Ryanair began standardizing its fleet by purchasing used Boeing 737-200A aircraft to...

  • Page 79
    ...2010 fiscal year was principally attributable to an increase in seat capacity, poor economic conditions, increased price promotions and the adverse impact of the strengthening of the U.K. pound sterling against the euro. Expanding passenger volumes and capacity, high load factors and aggressive cost...

  • Page 80
    ... employee share option trust and other parties, including members of the Irish Government. The offer of 11.40 per share represented a premium of approximately 25% over the closing price of 11.12 for Aer Lingus shares on November 28, 2008. As the Company was unable to secure the shareholders' support...

  • Page 81
    ... Although Ryanair currently passes on increased insurance costs to passengers by means of a special "insurance levy" on each ticket, there can be no assurance that it will continue to be successful in doing so. See "Item 3. Key Information-Risk Factors-The 2001 Terrorist Attacks on the United States...

  • Page 82
    ...of the aircraft, governmental regulations on aging of aircraft, changes in new aircraft technology, changes in new aircraft fuel efficiency and changing market prices for new and used aircraft of the same or similar types. Ryanair evaluates its estimates and assumptions in each reporting period, and...

  • Page 83
    ... obligation, based on the present value of the estimated future cost of the major airframe overhaul, engine maintenance checks, and restitution of major life-limited parts, calculated by reference to the number of hours flown or cycles operated during the year. Ryanair's aircraft operating lease...

  • Page 84
    ...in the 2010 fiscal year, while ancillary revenues per booked passenger decreased to 19.98 from 110.22. Revenues from non-flight scheduled operations, including revenues from excess baggage charges, debit and credit card transactions, sales of rail and bus tickets, accommodations and travel insurance...

  • Page 85
    ... sold on Ryanair.com or linked websites, increased 46.9%, from 156.9 million in the 2009 fiscal year to 183.6 million in the 2010 fiscal year. The rate of increase in revenues from Internet-related operations exceeded the increase in overall passengers booked, while the rate of increase in the...

  • Page 86
    ... 50 during the year, additional costs arising from increased line maintenance activity at new bases and costs incurred to satisfy provisions of lease contracts dealing with the condition of aircraft due to be returned in 2010 and 2011. These factors were offset in part by the positive impact of the...

  • Page 87
    ... rate of Irish corporation tax of 12.5%, the positive impact of the reduced rates of tax applicable to Internet-related businesses and the loss due to the impairment of the Company's available-for-sale financial asset (its Aer Lingus holding, which is not subject to corporation tax). Ryanair...

  • Page 88
    ... non-flight scheduled operations, including revenues from excess baggage charges, debit and credit card transactions, sales of rail and bus tickets, accommodations and travel insurance, increased 27.3% to 1425.8 million from 1334.6 million in the 2008 fiscal year, and car rental revenues increased...

  • Page 89
    ..., these costs increased 8.4%, from 1285.3 million in the 2008 fiscal year to 1309.3 million in the 2009 fiscal year. This increase in absolute terms was primarily attributable to a 21.0% increase in average headcount to 6,369 and a 13.8 million charge for share options granted to eligible employees...

  • Page 90
    ... overall growth in passenger volumes as well as increased costs at London (Stansted) airport, where unit costs doubled during the 2009 fiscal year, and higher charges at Dublin Airport, both offset in part by lower average costs at Ryanair's newer airports and bases. Marketing Distribution and Other...

  • Page 91
    ... 2008 fiscal year. The effective tax rate reflects the statutory rate of Irish corporation tax of 12.5%, the positive impact of the reduced rates tax applicable to Ryanair.com and other Internet-related businesses and the loss due to the impairment of the Company's available-for-sale financial asset...

  • Page 92
    ... these aircraft to support Ryanair's Export Import Bank of the United States (the "Ex-Im Bank") euro-denominated export credit facilities. See "Item 8. Financial InformationOther Financial InformationLegal Proceedings." The Company's net cash inflows from operating activities in the 2010 and...

  • Page 93
    ... U.S. Employment Cost and Producer Price indices from the time the Basic Price is set through the time six months prior to the delivery of such aircraft. The Basic Price is also subject to decrease to take into account certain concessions granted to the Company by Boeing pursuant to the terms of the...

  • Page 94
    ... incident at Rome (Ciampino) airport in November 2008, which has not been sold and remains the property of Ryanair. The Company will not return this aircraft to service. (b) At June 30, 2010 the Company had sold and delivered a cumulative total 25 Boeing 737-800 aircraft. The Company expects to...

  • Page 95
    ... new aircraft, the Company may exercise its rights to acquire some of the option aircraft detailed in the above table to cater to this demand. Capital Resources. Ryanair's long-term debt (including current maturities) totaled 12,398.4 million at March 31, 2009 and 12,956.2 million at March 31, 2010...

  • Page 96
    ...guarantee-based financing of the Boeing 737-800s, Ryanair has entered into certain lease agreements and related arrangements. Pursuant to these arrangements, legal title to the 157 aircraft delivered and remaining in the fleet as of March 31, 2010 rests with a number of United States special purpose...

  • Page 97
    ... financial condition. The Company financed 55 of the Boeing 737-800 aircraft delivered between December 2003 and March 2010 under seven-year, sale-and-leaseback arrangements with a number of international leasing companies, pursuant to which each lessor purchased an aircraft and leased it to Ryanair...

  • Page 98
    ... the amounts listed under "Purchase Obligations" in the table. With respect to purchase obligations under the terms of the 2005 Boeing contract, the Company was required to pay Boeing 1% of the Basic Price of each of the 70 firm-order Boeing 737-800 aircraft at the time the contract was signed in...

  • Page 99
    ... the Company's results of operations and financial condition, see "Item 3. Key Information-Risk Factors," "-Business Overview," "- Recent Operating Results," "-Results of Operations," "-Liquidity and Capital Resources" and "Item 4. Information on the Company-Strategy-Responding to Current Challenges...

  • Page 100
    ... investment firm. He currently serves as an officer and director of the general partner and manager of Texas Pacific Group. Mr. Bonderman is also an officer, director and shareholder of 1996 Air G.P. Inc., which owns shares of Ryanair. He also serves on the boards of directors of public companies...

  • Page 101
    ...and Head of Capital Markets at Davy Stockbrokers. Mr. McLaughlin also advised Ryanair during its initial flotation on the Dublin and NASDAQ stock markets in 1997. He is also the chairman of the board of directors of Elan Corporation plc, and he serves as a director of a number of other Irish private...

  • Page 102
    ...and Term of Office The Articles provide that the board of directors shall consist of no fewer than three and no more than 15 directors, unless otherwise determined by the stockholders. There is no maximum age for a director and no director is required to own any shares of Ryanair Holdings. Directors...

  • Page 103
    ... stock or asset purchases when a director, officer or substantial shareholder has an interest. The Company is subject to extensive provisions under the Listing Rules of the Irish Stock Exchange (the "Irish Listing Rules") governing transactions with related parties, as defined therein, and the Irish...

  • Page 104
    ...NASDAQ requires that a majority of an issuer's board of directors be "independent" under the standards set forth in the NASDAQ rules and that directors deemed independent be identified in the Company's annual report. The board of directors has determined that each of the Company's nine non-executive...

  • Page 105
    ... senior management positions within the Flight Operations Department over the last 17 years, including Fleet Captain of the BAC1-11 and Boeing 737-200 fleets. Ray was Head of Training between 1998 and June 2002. Prior to joining Ryanair, Ray served as an officer with the Irish Air Corps for 14 years...

  • Page 106
    ... the Air Safety Committee. For further details of stock options that have been granted to the Company's employees, including the executive officers, see "Item 10. Additional Information-Options to Purchase Securities from Registrant or Subsidiaries," as well as Note 15 to the consolidated financial...

  • Page 107
    ... operate pilot training courses using Ryanair's syllabus, in order to grant Boeing 737 type-ratings. Each trainee pilot must pay for his or her own training and, based on his or her performance, he or she may be offered a position operating on Ryanair aircraft. This program enables Ryanair to secure...

  • Page 108
    ... Holdings' shareholders have approved a number of share option plans for employees and directors. Ryanair Holdings has also issued share options to certain of its senior managers. For details of all outstanding share options, see "Item 10. Additional Information--Options to Purchase Securities...

  • Page 109
    ..." and "Limitations on Share Ownership by Non-EU Nationals." MAJOR SHAREHOLDERS Based on information available to Ryanair Holdings, the following table summarizes the holdings of those shareholders holding 3% or more of the Ordinary Shares as of June 30, 2010, June 30, 2009 and June 30, 2008, the...

  • Page 110
    ... any current or pending litigation, management does not believe that any of such litigation will, individually or in the aggregate, have a material adverse effect on the results of operations or financial condition of the Company, except as otherwise described below. EU State Aid-Related Proceedings...

  • Page 111
    ... found that the airport might have acted like a private market investor but that it had insufficient evidence to reach a conclusion and therefore had elected to open a formal investigation. This investigation is ongoing. Previous complaints by Lufthansa about Ryanair's cost base at Frankfurt (Hahn...

  • Page 112
    ...secure the shareholders' support it decided, on January 28, 2009, to withdraw its new offer for Aer Lingus. Legal Actions Against Regulated Monopoly Airports. Ryanair is involved in a number of legal and regulatory actions against the Dublin and London (Stansted) airports in relation to what Ryanair...

  • Page 113
    ...as "Item 4. Information on the Company-Airport Operations-Airport Charges." Dividend Policy. Since its incorporation as the holding company for Ryanair in 1996, Ryanair Holdings has not declared or paid dividends on its Ordinary Shares. However, the directors of Company declared on June 1, 2010 that...

  • Page 114
    ... financial statements included in this annual report. Item 9. The Offer and Listing TRADING MARKETS AND SHARE PRICES The primary market for Ryanair Holdings' Ordinary Shares is the Irish Stock Exchange Limited (the "Irish Stock Exchange"); Ordinary Shares are also traded on the London Stock Exchange...

  • Page 115
    ... Shares (Irish Stock Exchange) (in euro) High Low 2004...2005...2006...2007...2008 First Quarter...Second Quarter ...Third Quarter ...Fourth Quarter ...2009 First Quarter...Second Quarter ...Third Quarter ...Fourth Quarter ...Month ending: January 31, 2010...February 28, 2010...March 31, 2010...

  • Page 116
    .... The maximum price at which the Company may repurchase Ordinary Shares, in accordance with the listing rules of the Irish Stock Exchange and of the Financial Services Authority, is the higher of 5% above the average market value of the Company's Ordinary Shares for the five business days prior to...

  • Page 117
    ... the issued share capital of Ryanair Holdings as of such date. Of such total, options in respect of an aggregate of 15,925,305 Ordinary Shares were held by the directors and executive officers of Ryanair Holdings. For further information, see notes 15 and 19 to the consolidated financial statements...

  • Page 118
    ...also "-Limitations on Share Ownership by non-EU nationals" below. Under Irish law, if a party acquires or disposes of Ordinary Shares so as to bring his interest above or below 5% of the total issued share capital of the Company, he must notify the Company of that. The Irish Stock Exchange must also...

  • Page 119
    ...April 2008 through March 2013, as well as for options to purchase additional aircraft. See "Item 4. Information on the Company-Aircraft" and "Item 5. Operating and Financial Review and Prospects-Liquidity and Capital Resources" for a detailed discussion of the 2005 Boeing contract. EXCHANGE CONTROLS...

  • Page 120
    ... occur as a consequence of the level of non-EU ownership of shares or an Intervening Act is imminent, threatened or intended because of the manner of share ownership or control of Ryanair Holdings generally, the directors can take action pursuant to the Articles to deal with the situation. They can...

  • Page 121
    ... Shares and the name of the person or persons who will answer queries relating to Restricted Shares on behalf of Ryanair Holdings. The directors shall publish information as to the number of shares held by EU nationals annually. In an effort to increase the percentage of its share capital held by EU...

  • Page 122
    .... If Ryanair Holdings pays dividends or makes other relevant distributions, the following is relevant: Withholding Tax. Unless exempted, a withholding at the standard rate of income tax (currently 20%) will apply to dividends or other relevant distributions paid by an Irish resident company. The...

  • Page 123
    ... more companies, in either case the principal classes of shares of which is or are substantially and regularly traded on a recognized stock exchange in a tax treaty country or an EU member state including Ireland or on an approved stock exchange. • • • • In the case of an individual non...

  • Page 124
    ...the United States for this purpose). Under current Irish law, no stamp duty will be payable on the acquisition of ADSs by persons purchasing such ADSs or on any subsequent transfer of ADSs. A transfer of Ordinary Shares (including transfers effected through Euroclear U.K. & Ireland Limited) wherever...

  • Page 125
    ..., in the year in which the dividend is paid, a passive foreign investment company (a "PFIC"). The income tax treaty between Ireland and the United States has been approved for the purposes of the qualified dividend rules. Based on the Company's audited financial statements and relevant market data...

  • Page 126
    ... its Corporate Head Office, Dublin Airport, County Dublin, Ireland. Ryanair Holdings also files reports, including annual reports on Form 20-F, periodic reports on Form 6K and other information, with the SEC pursuant to the rules and regulations of the SEC that apply to foreign private issuers. You...

  • Page 127
    ...Risks-Fuel Price Exposure and Hedging" for additional information on recent trends in fuel costs and the Company's related hedging activities, as well as certain associated risks. See also "Item 5. Operating and Financial Review and Prospects-Fiscal Year 2010 Compared with Fiscal Year 2009- Fuel and...

  • Page 128
    ... years, the Company entered into a series of forward contracts, principally euro/U.S. dollar forward contracts to hedge against variability in cash flows arising from market fluctuations in foreign exchange rates associated with its forecast fuel, maintenance and insurance costs and euro/U.K.pound...

  • Page 129
    ... associated with capital expenditures. During the 2010 and 2009 fiscal years, the Company also entered into a series of U.K. pound sterling/U.S. dollar and euro/U.S. dollar contracts to hedge against changes in the fair value of aircraft purchase commitments under the Boeing contracts, which arise...

  • Page 130
    ....2 million in the 2010 fiscal year. Item 12. Description of Securities Other than Equity Securities Holders of ADSs are required to pay certain fees and expenses. The table below sets forth the fees and expenses which, under the deposit agreement between the Company and The Bank of New York Mellon...

  • Page 131
    ...of the Company's management, including the chief executive officer and chief financial officer, of the effectiveness of the design and operation of the Company's disclosure controls and procedures (as defined in Rules 13a-15(e) and 15d-15(e) under the Exchange Act). There are inherent limitations to...

  • Page 132
    ... financial statements. • • The Company's management evaluated the effectiveness of the Company's internal control over financial reporting as of March 31, 2010, based on the criteria established in "Internal Control - Integrated Framework," issued by the Committee of Sponsoring Organizations...

  • Page 133
    ... to the Company's chief executive officer, chief financial officer, chief accounting officer, controller and persons performing similar functions, as well as to all of the Company's other officers, directors and employees. The Code of Business Conduct and Ethics is available on Ryanair's website at...

  • Page 134
    ... Securities by the Issuer and Affiliated Purchasers None. Item 16F. Change in Registrant's Certified Accountant Not applicable. Item 16G. Corporate Governance See "Item 6. Directors, Senior Management and Employees-Directors-Exemptions from NASDAQ Corporate Governance Rules" for further information...

  • Page 135
    ...Sheet of Ryanair Holdings plc at March 31, 2010 ...Company Statement of Cash Flows of Ryanair Holdings plc for the year ended March 31, 2010 ...Company Statement of Changes in Shareholders' Equity of Ryanair Holdings plc for the year ended March 31, 2010...Notes forming part of the Company Financial...

  • Page 136
    ... assets...Available for sale financial assets ...Derivative financial instruments ...Total non-current assets ...Current assets Inventories ...Other assets ...Current tax ...Trade receivables ...Derivative financial instruments ...Restricted cash ...Financial assets: cash > 3 months ...Cash and cash...

  • Page 137
    ... operations ...17 Operating expenses Staff costs ...18 Depreciation...2 Fuel and oil ...Maintenance, materials and repairs...Aircraft rentals ...Route charges...Airport and handling charges...Marketing, distribution and other...Total operating expenses ...Operating profit - continuing operations...

  • Page 138
    ... in cash-flow hedge reserve...Available for sale financial asset: Net increase/(decrease) in fair value of available-for-sale asset ...Impairment of available-for-sale asset written off to the income statement ...Net movements in available-for-sale financial asset reserve...Total other comprehensive...

  • Page 139
    ...fair value of available-for -sale asset...Total other comprehensive income/(loss)...Total comprehensive income...Issue of ordinary equity shares...3.2 Repurchase of ordinary equity shares...(59.5) Capital redemption reserve fund...Share-based payments...Balance at March 31, 2008...1,490.8 (Loss) for...

  • Page 140
    ... of available-for-sale financial asset...(Increase)/decrease in interest receivable...(Increase)/decrease in interest payable...Retirement costs ...Share-based payments ...Income tax refunded/(paid)...Net cash provided by operating activities ...Investing activities Capital expenditure (purchase of...

  • Page 141
    ... or the "Company") and currently operate a low-fares airline headquartered in Dublin, Ireland. All trading activity continues to be undertaken by the group of companies headed by Ryanair Limited. Statement of compliance In accordance with the International Accounting Standards ("IAS") Regulation (EC...

  • Page 142
    ... date of the relevant share options. Any non-current assets classified as held for sale are stated at the lower of cost and fair value less costs to sell. Critical accounting policies The preparation of financial statements in conformity with IFRS requires management to make judgements, estimates...

  • Page 143
    ... to governmental regulations on aging aircraft, and changing market prices for new and used aircraft of the same or similar types. Ryanair evaluates its estimates and assumptions in each reporting period, and, when warranted, adjusts these assumptions. Generally, these adjustments are accounted for...

  • Page 144
    ... of March 31, 2010. Subsidiaries are entities controlled by Ryanair. Control exists when Ryanair has the power either directly or indirectly to govern the financial and operating policies of an entity so as to obtain benefit from its activities. All inter-company account balances and any unrealised...

  • Page 145
    ... obligation, based on the present value of the estimated future cost of the major airframe overhaul, engine maintenance checks, and restitution of major life-limited parts, calculated by reference to the number of hours flown or cycles operated during the year. Ryanair's aircraft operating lease...

  • Page 146
    ... at amortised cost, using the effective interest method in the balance sheet. Derivative financial instruments Ryanair is exposed to market risks relating to fluctuations in commodity prices, interest rates and currency exchange rates. The objective of financial risk management at Ryanair is to...

  • Page 147
    ... not recognised on the Company's balance sheet. Expenditure arising under operating leases is charged to the income statement as incurred. The Company also enters into sale-and-leaseback transactions whereby it sells the rights to acquire an aircraft to an external party and subsequently leases the...

  • Page 148
    ... a binomial lattice option-pricing model, which takes into account the exercise price of the option, the current share price, the risk-free interest rate, the expected volatility of the Ryanair Holdings plc share price over the life of the option and other relevant factors. Non-market vesting 146

  • Page 149
    ... non-current assets or liabilities on the balance sheet. The deferred tax impact of any such amount is disclosed separately within deferred tax. The Company separately recognises the operating and financing costs of defined-benefit pensions in the income statement. IFRS permits a number of options...

  • Page 150
    ... basis). Amendments to IFRS 2, "Share-based Payment - Group Cash-settled Share-based Payment Transactions" (effective for fiscal periods beginning on or after January 1, 2010). Amendment to IAS 32, "Financial Instruments: Presentation - Classification of Rights Issues" (effective for fiscal periods...

  • Page 151
    ... Motor Vehicles 1M Aircraft 1M Year ended March 31, 2010 Cost At March 31, 2009...Additions in year ...Disposals in year...At March 31, 2010...Depreciation At March 31, 2009...Charge for year ...Eliminated on disposals ...At March 31, 2010...Net book value At March 31, 2010... Total 1M 4,220.5 992...

  • Page 152
    ... security arrangements for the Company's new Boeing 737-800 "next generation" aircraft, the Company does not hold legal title to those aircraft while these loan amounts remain outstanding. At March 31, 2010, the cost and net book value of aircraft includes 1397.8 million (2009: 1405.3 million; 2008...

  • Page 153
    4 Available-for-sale financial assets At March 31, 2009 1M 93.2 2010 1M Investment in Aer Lingus ...116.2 2008 1M 311.5 As at March 31, 2010 Ryanair's total holding in Aer Lingus was 29.8% (2009: 29.8%; 2008: 29.3%). The balance sheet value of 1116.2 million (2009: 193.2 million; 2008: 1311.5 ...

  • Page 154
    ..., the Company aims to achieve the best available return on investments of surplus cash - subject to credit risk and liquidity constraints. Credit risk is managed by limiting the aggregate amount and duration of exposure to any one counterparty based on third-party marketbased ratings. In line with...

  • Page 155
    ... Company's balance sheet, are analysed as follows: At March 31, 2009 1M 0.7 129.3 130.0 2010 1M Current assets Gains on fair-value hedging instruments - maturing within one year...Gains on cash-flow hedging instruments - maturing within one year ...122.6 122.6 2008 1M 10.2 10.2 Non-current assets...

  • Page 156
    Foreign currency forward contracts are utilised in a number of ways: forecast U.K. pounds sterling and euro revenue receipts are converted into U.S. dollars to hedge against forecasted U.S. dollar payments principally for jet fuel, insurance, capital expenditure and other aircraft related costs. ...

  • Page 157
    ... designated as cash-flow hedges were expected to occur, as of March 31, 2010, 2009 and 2008: Carrying Amount Expected Cash flows 2011 2012 2013 2014 Thereafter 1M At March 31, 2010 Interest rate swaps ...U.S. dollar currency forward contracts ...U.K. pounds sterling currency forward contracts...

  • Page 158
    ...2008: Carrying Amount Expected Cash flows 2011 2012 2013 2014 Thereafter 1M At March 31, 2010 Interest rate swaps ...U.S. dollar currency forward contracts...U.S. dollar currency forward contracts capitalised in property plant and equipment - aircraft additions ...U.K. pounds sterling currency...

  • Page 159
    ... impairments is as follows: Balance at beginning of year 1M Year ended March 31, 2010...Year ended March 31, 2009...Year ended March 31, 2008...0.1 0.1 0.2 Additions charged to expenses 1M Balance at end of year 1M 0.1 0.1 0.1 Write-offs 1M (0.1) No customers accounted for more than 10% of...

  • Page 160
    ... Sale Cash-Flow Hedges Fair-Value Hedges Loans and Receivables Total Carrying Value Total Fair Value 1M At March 31, 2010 Available-for-sale financial assets ...Cash and cash equivalents ...Financial asset: cash > 3 months...Restricted cash...Derivative financial instruments - U.S. dollar currency...

  • Page 161
    ... March 31, 2008 Available-for-sale financial assets ...Cash and cash equivalents ...Financial asset: cash > 3 months...Restricted cash...Derivative financial instruments - FX on aircraft purchase firm commitments ...- U.S. dollar currency forward contracts...- Jet fuel derivative contracts ...Trade...

  • Page 162
    ... rate swaps ...- Jet fuel derivative contracts ...Aircraft maintenance provision on operating leased aircraft...Trade payables ...Accrued expenses ...Total financial liabilities at March 31, 2009 ...2,956.2 92.6 154.0 260.3 3,463.1 Cash-Flow Hedges 1M 76.4 76.4 Fair-Value Hedges 1M Total Carrying...

  • Page 163
    ...market rate for contracts providing a similar risk management profile at March 31, 2010, 2009 and 2008 has been made. The table below analyses financial instruments carried at fair value in the balance sheet categorised by the type of valuation method used. The different valuation levels are defined...

  • Page 164
    ... Export-Import Bank of the United States to finance the acquisition of 151 Boeing 737-800 "next generation" aircraft (2009: 109; 2008: 107). The guarantees are secured with a first fixed mortgage on the delivered aircraft. The remaining long-term debt relates to 20 aircraft held under finance leases...

  • Page 165
    ...Company's financial liabilities (excluding aircraft provisions, trade payables and accrued expenses) at March 31, 2008 was as follows: Weighted average fixed rate (%) Fixed rate Secured long term-debt...Debt swapped from floating to fixed...Secured long-term debt after swaps...Finance leases...Total...

  • Page 166
    ... Company's financial liabilities are as follows: Total Carrying Value 1M At March 31, 2010 Long term debt and finance leases - Fixed rate debt ...3.89% - Floating rate debt ...1.35% Derivative financial instruments - Interest rate swaps...Aircraft maintenance provision on operating leased aircraft...

  • Page 167
    ...Company holds significant cash balances that are invested on a short-term basis. At March 31, 2010, all of the Company's cash and liquid resources had a maturity of one year or less and attracted a weighted average interest rate of 0.93% (2009: 1.84%; 2008: 4.51%). March 31, 2010 Within 1 year Total...

  • Page 168
    ... in relation to fuel, maintenance, aviation insurance and capital expenditure costs or are sold for euro. The Company also sells euro forward to cover certain U.S. dollar costs. Further details of the hedging activity carried out by the Company are disclosed in Note 5 to the consolidated financial...

  • Page 169
    ... review of counterparties' market-based ratings, Tier 1 capital level and credit default swap rates and by taking into account bank counterparties' systemic importance to the financial systems of their home countries. The Company typically enters into deposits and derivative contracts with parties...

  • Page 170
    ... of 10% in the Aer Lingus share price at March 31, 2010 would result in an increase of 111.6 million in the fair value of the available-for-sale financial assets reserve. Such an increase would be recognised in other comprehensive income. 12 Deferred and current taxation The components of the...

  • Page 171
    ... 31, 2009 1M 9.0 9.0 (1.1) 20.0 18.9 2010 1M Defined benefit pension obligations ...Derivative financial instruments ...Available for sale securities...Total tax charge/(credit) in other comprehensive income... 2008 1M 0.6 (14.7) (12.2) (26.3) The majority of current and deferred tax recorded in...

  • Page 172
    ... temporary differences...Arising on net operating losses carried forward...Arising on derivatives...Arising on pensions ...Total...221.8 (29.5) 8.6 (1.3) 199.6 2008 1M 168.6 (20.3) (0.2) 148.1 At March 31, 2010, 2009 and 2008, the Company had fully provided for all required deferred tax assets and...

  • Page 173
    ... leaseback of aircraft. During fiscal year 2010, Ryanair entered into a sale-and-leaseback arrangement for 12 (2009: 8; 2008: 3) new Boeing 737-800 "next generation" aircraft, in addition to 43 in previous years. 15 (a) Issued share capital, share premium account and share options Share capital At...

  • Page 174
    ... 12.49 13.00 The mid-market price of Ryanair Holdings plc's ordinary shares on the Irish Stock Exchange at March 31, 2010 was 13.68 (2009: 12.89, 2008: 12.80). The highest and lowest prices at which the Company's shares traded on the Irish Stock Exchange in the 2010 fiscal year were 13.77 and 12.74...

  • Page 175
    ... other related services to third parties across a European route network. The Company operates a single fleet of aircraft that is deployed through a single route scheduling system. As of April 1, 2009 the Company determines and presents operating segments based on the information that internally is...

  • Page 176
    ...447.2 Reconciliation of reportable segment profit or loss to consolidated profit after income tax is as follows: Year ended March 31, 2010 1M Total adjusted profit or loss for reportable segment...Other items of profit or loss Loss on impairment of available-for-sale financial asset ...Accelerated...

  • Page 177
    ... assets and related liabilities to geographical segments. 18 Staff numbers and costs The average weekly number of staff, including the executive director, during the year, analysed by category, was as follows: Year ended March 31, 2010 Flight and cabin crew (full time employees)...Flight and cabin...

  • Page 178
    ..., employee benefit plan audits, and special procedures required to meet certain regulatory requirements. (iii) Tax services include all services, except those services specifically related to the audit of financial statements, performed by the independent auditor's tax personnel, supporting tax...

  • Page 179
    ...service and disability benefits provided during the financial year is not included in the above figures. No pension benefits are provided for non-executive directors. The pension benefits set out above have been computed in accordance with Section 6.8 of the Listing Rules of the Irish Stock Exchange...

  • Page 180
    ... Shares and share options (i) Shares Ryanair Holdings plc is listed on the Irish, London and NASDAQ stock exchanges. The beneficial interests as at March 31, 2010, 2009 and 2008 of the directors and of their spouses and minor children in the share capital of the Company are as follows: No. of Shares...

  • Page 181
    ...00 3.00 4.00 2010 Discount rate used for Irish plan...Discount rate used for UK plan...Return on plan assets for Irish plan...Return on plan assets for UK plan ...Rate of euro inflation ...Rate of UK inflation ...Future pension increases in Irish plan...Future pension increases in UK plan ...Future...

  • Page 182
    ... consolidated balance sheets in respect of our defined benefit plans are as follows: At March 31, 2009 1M (28.0) 17.9 (10.1) 1.3 (8.8) 2010 1M Present value of benefit obligations ...Fair value of plan assets...Present value of net obligations ...Related deferred tax asset ...Net pension (liability...

  • Page 183
    ...2.00%; 2008: 5.00%). Since there are no suitable Euro-denominated AA-rated corporate bonds, the expected return is estimated by adding a suitable risk premium to the rate available from government bonds. The assumptions are based on long-term expectations at the beginning of the reporting period and...

  • Page 184
    ... share options in issue have been described more fully in Note 15 to the consolidated financial statements. Basic earnings per ordinary share (EPS) for Ryanair Holdings plc for the years ended March 31, 2010, 2009 and 2008 has been computed by dividing the profit/(loss) attributable to shareholders...

  • Page 185
    ... in fiscal 2011. In December 2009, the Company exercised 10 options with Boeing under the terms of its 2005 contract. These "firm" Boeing 737-800 aircraft will be delivered in fiscal 2013. The table below details the firm aircraft delivery schedule at March 31, 2010 and March 31, 2009 for the...

  • Page 186
    ... 55 of the Boeing 737-800 aircraft delivered between December 2003 and March 2010 under seven-year, sale-and-leaseback arrangements with a number of international leasing companies, pursuant to which each lessor purchased an aircraft and leased it to Ryanair under an operating lease. As a result...

  • Page 187
    ... 2010 with 13-year euro-denominated Japanese Operating Leases with Call Options ("JOLCOs"). These structures are accounted for as finance leases and are initially recorded at fair value in the Company's balance sheet. Under each of these contracts, Ryanair has a call option to purchase the aircraft...

  • Page 188
    ... on June 1, 2010 that Ryanair Holdings plc intends to pay a special dividend of 1500 million, to be paid in October, 2010, subject to shareholder approval at the Company's AGM on September 22, 2010. In order to ensure the parent company, Ryanair Holdings plc, has sufficient distributable profits to...

  • Page 189
    ... to above have been consolidated in the financial statements of Ryanair Holdings plc for the years ended March 31, 2010, March 31, 2009 and March 31, 2008. The total amount of remuneration paid to senior key management (defined as the executive team reporting to the Board of Directors) amounted to...

  • Page 190
    Company Balance Sheet 2010 1M At March 31, 2009 1M 2008 1M Note Non-current assets Investments in subsidiaries ... 29 98.9 94.0 90.2 Current assets Loans and receivables from subsidiaries ...30 Total assets ...Current liabilities Amounts due to subsidiaries ...Shareholders' equity Issued share ...

  • Page 191
    Company Statement of Cash Flows Year ended March 31, 2010 1M Operating activities Profit for the year...Net cash provided by operating activities Investing activities (Increase) in loans to subsidiaries ...Net cash used in investing activities...Financing activities Shares purchased under share buy ...

  • Page 192
    Company Statement of Changes in Shareholders' Equity Ordinary Shares M Balance at March 31, 2007 ...1,547.1 Comprehensive income Profit for the year...Other comprehensive income...Total comprehensive income...Issue of ordinary equity shares...3.2 Repurchase of ordinary equity shares...(59.5) Capital...

  • Page 193
    ... income and related notes that form a part of these approved financial statements. The Company financial statements are presented in euro, rounded to the nearest million, being its functional currency. They are prepared on an historical cost basis except for certain share based payment transactions...

  • Page 194
    ....2 35.2 Year ended March 31, 2008 1M 35.2 35.2 At March 31, 2010, Ryanair Holdings plc had borrowings of 135.2 million (2009: 135.2 million; 2008: 135.2 million) from Ryanair Limited. The loan is interest free and repayable on demand. 32 Financial instruments The Company does not undertake hedging...

  • Page 195
    ... 26 to the consolidated financial statements, are Airport Marketing Services Limited, FRC Investments Limited, Coinside Limited and Mazine Limited. 34 Post-balance sheet events The directors of the Company declared on June 1, 2010 that Ryanair Holdings plc intends to pay a special dividend of 1500...

  • Page 196
    ...annual report have the meanings indicated below and refer only to Ryanair's scheduled passenger service. Available Seat Miles ("ASMs") ...Average Booked Passenger Fare...Average Daily Flight Hour Utilization...Average Fuel Cost Per U.S. Gallon...Represents the number of seats available for scheduled...

  • Page 197
    ON TIME ARRIVALS Source: Ryanair and most recent published AEA statistics

  • Page 198
    OSLO EDINBURGH (Rygge-Moss) Lappeenranta (Vasteras) (Skavsta) Knock BELFAST LEEDS Billund Oslo (Torp) Norrköping Smaland KAUNAS KERRY BRISTOL BOURNEMOUTH EAST MIDLANDS BIRMINGHAM BREMEN Maastricht Lille (Beauvais) London DÜSSELDORF Katowice Memmingen Brescia Verona Prague Klagenfurt ...