Ryanair 2010 Annual Report Download - page 66

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Ryanair contracts out engine overhaul service for its Boeing 737-800 aircraft to General Electric
Engine Services pursuant to a 10-year agreement with an option for a 10-year extension, signed in 2004. This
comprehensive maintenance contract provides for the repair and overhaul of the CFM56-7 series engines fitted
to the first 155 of Ryanair’s Boeing 737-800 aircraft, the repair of parts and general technical support for the
fleet of engines. On June 30, 2008, the Company finalized a contract for a similar level of coverage and support
for the engines on all of its aircraft that have been or are scheduled to be delivered as well as any option aircraft
delivered pursuant to the Company’s current contracts with Boeing over the period through November 2012.
General Electric Engine Services mainly uses its Part 145-approved repair facility in Cardiff, Wales for this
work, but also uses the KLKM Part 145-approved facility in Amsterdam, and occasionally its Part 145-approved
facility in Celma, Brazil. By contracting with experienced Part 145-approved maintenance providers,
management believes it is better able to ensure the quality of its aircraft and engine maintenance. Ryanair
assigns a Part 145-certified mechanic to oversee all heavy maintenance and to authorize all engine overhauls
performed by third parties. Maintenance providers are also monitored closely by the national authorities under
EASA and national regulations.
Ryanair expects to be dependent on external service contractors, particularly for engine and component
maintenance, for the foreseeable future, notwithstanding the additional capabilities provided by its maintenance
facilities 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 history. Ryanair
demonstrates its commitment to safe operations through its safety training procedures, its investment in safety-
related equipment, and its adoption of an internal confidential reporting system for safety issues. The
Company’s board of directors also has an air safety committee to review and discuss air safety and related
issues. Michael Horgan, a Company director, is the chairman of this committee and reports to the board of
directors.
Ryanair’s flight training is oriented towards accident prevention and covers all aspects of flight
operations. Ryanair maintains full control of the content and delivery of all of its flight crew training, including
initial, recurrent, and upgrade phases. All training programs are approved by the Irish Aviation Authority (the
“IAA”), which regularly audits both operation control standards and flight crew training standards for
compliance with EU legislation.
All of the Boeing 737-800s that Ryanair has bought or committed to buy are certified for Category IIIA
landings (automatic landings with minimum horizontal visibility of 200 meters and no vertical visibility).
Ryanair has a comprehensive and documented safety management system. Management encourages
flight crews to report any safety-related issues through the Safety Alert Initial Report reporting program or to
use the confidential reporting system, which is available online through Ryanair’s Crewdoc system. The
confidential reporting system affords flight crews the opportunity to report directly to senior management any
event, error, or discrepancy in flight operations that they do not wish to report through standard reporting
channels. The confidential reporting system is designed to increase management’s awareness of problems that
may be encountered by flight crews in their day-to-day operations. Management uses the information reported
through all reporting systems to modify operating procedures and improve flight operation standards.
Ryanair has installed an Operational Flight Data Monitoring (OFDM) system on each of its Boeing
737-800 aircraft, which automatically provides a confidential report on deviations from normal operating
procedures detected during the course of each flight. The purpose of this system is to monitor operational trends
and inform management of any instance of an operational limit being exceeded. By analyzing these reports,
management is able to identify undesirable trends and potential areas of risk, so as to take steps to rectify such
deviations, thereby ensuring adherence to Ryanair’s flight safety standards.
In November 2008, a Ryanair aircraft suffered a multiple bird strike during its final approach to Rome
(Ciampino) airport. This incident caused substantial damage to the aircraft, which resulted in an insurance claim
being filed in respect of this aircraft. The damage that it suffered was such that the aircraft was not repaired. It is
scheduled as a “disposal” in the table on page 92, although Ryanair has retained ownership of it for certain parts
and for training purposes.