Ryanair 2011 Annual Report Download - page 71

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Ryanair has not registered either its name or its logo as a trademark in Ireland, as CTM-registration
provides all of the protection available from an Irish registration, and management believes there are therefore
no advantages in making a separate Irish application.
GOVERNMENT REGULATION
Liberalization of the EU Air Transportation Market
Ryanair began its flight operations in 1985, during a decade in which the governments of Ireland and
the U.K. liberalized the bilateral arrangements for the operation of air services between the two countries. In
1992, the Council of Ministers of the EU adopted a package of measures intended to liberalize the internal
market for air transportation in the EU. The liberalization included measures that allow EU air carriers
substantial freedom to set air fares, provided EU air carriers greatly enhanced access to routes within the EU,
and also introduced a licensing procedure for EU air carriers. Beginning in April 1997, EU air carriers have
generally been able to provide passenger services on domestic routes within any EU member state outside their
home country of operations without restriction. See also “Industry OverviewEuropean Airline Market.”
Regulatory Authorities
Ryanair is subject to Irish and EU regulation, which is implemented primarily by the Department of
Transport, the IAA, the European Commission, and the EASA. Management believes that the present regulatory
environment in Ireland and the EU is characterized by high sensitivity to safety and security issues, which is
demonstrated by intensive reviews of safety-related procedures, training, and equipment by the national and EU
regulatory authorities.
Commission for Aviation Regulation. The CAR is currently primarily responsible for deciding
maximum airport charges only at Dublin Airport. See “Airport OperationsAirport Charges” above.
The CAR also has responsibility for licensing Irish airlines, subject to the requirements of EU law. It
issues operating licenses under the provisions of EU Regulation 1008/2008 (formerly 2407/92). An operating
license is an authorization permitting the holder to transport passengers, mail and/or cargo by air. The criteria
for granting an operating license include, inter alia, an air carrier’s financial fitness, the adequacy of its
insurance, and the fitness of the persons who will manage the air carrier. In addition, in order to obtain and
maintain an operating license, Irish and EU regulations require that (i) the air carrier must be owned and
continue to be owned directly or through majority ownership by EU member states and/or nationals of EU
member states and (ii) the air carrier must at all times be effectively controlled by such EU member states or EU
nationals. The CAR has broad authority to revoke 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 nationals and the Company has Instituted a Ban on the Purchase of
Ordinary Shares by Non-EU Nationals” above.
The CAR is also responsible for deciding whether a regulated airport should be coordinated or fully
coordinated under Council Regulation (EEC) No. 95/93 (as amended by Regulation (EC) No. 793/2004) on slots
and for authorizing ground handling operations under Council Directive 96/67/EC and its implementing
legislation. In April 2005, the CAR announced that Dublin Airport would be fully slot-coordinated beginning in
March 2006. Ryanair successfully challenged this decision in the Irish High Court, and the decision was
overturned in July 2006. In February 2007, the CAR re-imposed full coordination at Dublin Airport. Ryanair
again challenged this decision in the Irish High Court, but subsequently withdrew the challenge. See “—Slots”
below for additional information regarding this litigation.
Ryanair’s current operating license became effective on December 1, 1993, and is subject to periodic
review. The Flight Operations Department is also subject to ongoing review by the Irish Aviation Authority (the
IAA), which reviews the department’s audits, including flight audits, training audits, document audits, and
quality audits. Ryanair’s current Air Operator Certificate No IE 7/94 was issued on January 26, 2011.
Irish Aviation Authority. The IAA is primarily responsible for the operational and regulatory function
and services relating to the safety and technical aspects of aviation in Ireland. To operate in Ireland and the EU,