Ryanair 2010 Annual Report Download - page 74

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European Commission. The European Commission is in the process of introducing a “single European
sky policy,” which would lead to changes to air traffic management and control within the EU. The “single
European sky policy” currently consists of the Framework Regulation (Reg. (EC) No. 549/2004) plus three
technical regulations on the provision of air navigation services, organization and use of the airspace and the
interoperability of the European air traffic management network. These regulations have recently been amended
by the so-called “Single European Sky II” regulation (EU Regulation 1070/09). The objective of the policy is to
enhance safety standards and the overall efficiency of air traffic in Europe, as well as to reduce the cost of air
traffic control services.
On September 6, 2005, the European Commission announced new guidelines on the financing of both
airports and start-up aid to airlines by certain regional airports based on its finding in the Charleroi case, a
decision that the CFI has since annulled. The guidelines only apply to publicly owned regional airports, and
place restrictions on the incentives that these airports can offer airlines to deliver traffic. However, Ryanair
believes that the CFI’s annulment of the Charleroi decision severely undermines these guidelines.
The European Parliament and the European Council have also passed legislation on airport charges
(EU Directive 2009/12), which was originally intended to address abusive pricing at monopoly airports.
However, the legislation includes all European airports with over five million passengers per year. Management
believes that this will likely increase the administrative burdens on smaller airports and may lead to higher
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 Proceedings.”
The European Council has also passed legislation calling for transparency in airline fares, which
requires the inclusion of all mandatory taxes, fees, and charges in advertised prices. Ryanair currently includes
this information in its advertised fares in all markets where it operates.
Registration of Aircraft
Pursuant to the Irish Aviation Authority (Nationality and Registration of Aircraft) Order 2002 (the
“Order”), the IAA regulates the registration of aircraft in Ireland. In order to be registered or continue to be
registered in Ireland, an aircraft must be wholly owned by either (i) a citizen of Ireland or a citizen of another
member state of the EU having a place of residence or business in Ireland or (ii) a company registered in and
having a place of business in Ireland and having its principal place of business in Ireland or another member
state of the EU and not less than two-thirds of the directors of which are citizens of Ireland or of another
member state of the EU. As of the date of this report, eight of the ten directors of Ryanair Holdings are citizens
of Ireland or of another member state of the EU. An aircraft will also fulfill these conditions if it is wholly
owned by such citizens or companies in combination. Notwithstanding the fact that these particular conditions
may not be met, the IAA retains discretion to register an aircraft in Ireland so long as it is in compliance with the
other conditions for registration under the Order. Any such registration may, however, be made subject to
certain conditions. In order to be registered, an aircraft must also continue to comply with any applicable
provisions of Irish law. The registration of any aircraft can be cancelled if it is found that it is not in compliance
with the requirements for registration under the Order and, in particular: (i) if the ownership requirements are
not met; (ii) if the aircraft has failed to comply with any applicable safety requirements specified by the IAA in
relation to the aircraft or aircraft of a similar type; or (iii) if the IAA decides in any case that it is not in the
public interest for the aircraft to remain registered in Ireland.