Ryanair 2010 Annual Report Download - page 9

7
Our People
Over the past twelve months, I am pleased to say that average employment numbers in Ryanair rose by
10% from 6,369 to 7,032. Within that number 582 people were promoted, as our expansion created new
opportunities for career development and progression. Ryanair’s people know that they can get ahead by
taking advantage of our commitment to promote from within wherever possible. Despite a pay freeze last year,
Ryanair’s average pay, including cabin crew commissions was 145,948 and remains higher than most other
major European airlines. Even more importantly, Ryanair’s rosters which maximise people’s productivity
while at work, while maximising their time off, when they are off duty, enables our pilots to operate a, 5 on 4
off, roster pattern while our cabin crew enjoy a, 5 on 3 off, roster. More importantly, through a combination of
cost savings including last year’s pay freeze, Ryanair avoided deep pay cuts or large scale redundancies
announced by so many other European flag carriers.
Our Shareholders
Unlike so many other airlines, Ryanair continues to put our shareholder and their interests at the heart of
our operations. Uniquely among airlines, the Board and Management team in Ryanair have a significant (over
5%) stake in the company. We think and act like shareholders, because we are substantial shareholders. We
take brave decisions such as 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 slow down our growth from between
15% to 20% p.a. to closer to 5% to 10% p.a. over the next 3 years. This was already built into our existing
aircraft orders. However, any new order with Boeing - or indeed Airbus - will only be completed if the pricing
and delivery terms deliver superior shareholder returns over the medium term. Since our negotiations with
Boeing were terminated in December 2009, it has become clear that Ryanair, if current profitability is
maintained, will generate substantial free cash reserves over the next 3 years as our gross capital expenditure
dwindles from 11.2bn p.a. to less than 1100m.
Our commitment to shareholders has been demonstrated by the Board’s proposal to return 1500m to
shareholders in a one-off dividend in October 2010, subject to AGM approval in September. This dividend,
when combined with two previous share buybacks, will bring the total funds returned to shareholders to
almost 1850m over the past three years. This is almost 1300m more than the total net equity funds raised
(1555m) by Ryanair in the public markets during our 1997 flotation, and four subsequent secondary offerings
in 1998, 1999, 2000 and 2001. I would caution that shareholders should not expect Ryanair to be a source of
consistent or reliable dividends. As a capital intensive company, in a very cyclical industry, I believe that
Ryanair will continue to be substantially cash positive, but any future dividends to shareholders must take
account of the airline’s capital expenditure needs, potential acquisitions, and of course our ongoing
profitability. However shareholders can rest assured that since the Board and Management of Ryanair continue
to own more than 5% of the company, our interests and theirs are perfectly aligned.
Finally, I would like to conclude this year’s report by expressing my sincere thanks to David Bonderman,
our Chairman and the other members of the Board, who continue to guide the airline on a safe and successful
growth path. I would also like to sincerely thank each and every member of the Ryanair team who have
worked so hard to deliver such outstanding value and customer service to the 66.5m passengers who flew with
us. Here’s hoping that we will continue to offer unbeatable fares and unbeatable customer service to the more
than 73m passengers we hope to carry in the current year, and if we do, then Ryanair will continue to grow
and succeed to the benefit of our passengers, our people and our shareholders.
Michael O’Leary
Chief Executive