Ryanair 2011 Annual Report Download - page 72

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an Irish air carrier is required to hold an operator’s certificate granted by the IAA attesting to the air carrier’s
operational and technical competence to conduct airline services with specified types of aircraft. The IAA has
broad authority to amend or revoke an operator’s certificate, with Ryanair’s ability to continue to hold its
operator’s certificate being subject to ongoing compliance with applicable statutes, rules and regulations
pertaining to the airline industry, including any new rules and regulations that may be adopted in the future.
The IAA is also responsible for overseeing and regulating the operations of Irish air carriers. Matters
within the scope of the IAA’s regulatory authority include: air safety; aircraft certification; personnel licensing
and training; maintenance, manufacture, repair, airworthiness, and operation of aircraft; implementation of EU
legislation; aircraft noise; and ground services. Each of the Company’s aircraft is required to have a Certificate
of Airworthiness, which is issued by the IAA. The validity of Certificates of Airworthiness is subject to the
review of a committee of the IAA. Each certificate is generally valid for a 12-month period. In March 2009,
Ryanair received “Sub-Part (I) approval” from the IAA, which gives Ryanair the authority to extend the validity
of its certificates, subject to certain record checks and physical aircraft inspections being performed by
Ryanair’s quality department. The Company’s flight personnel, flight and emergency procedures, aircraft, and
maintenance facilities are subject to periodic inspections and tests by the IAA. The IAA has broad regulatory
and enforcement powers, including the authority to require reports; inspect the books, records, premises, and
aircraft of a carrier; and investigate and institute enforcement proceedings. Failure to comply with IAA
regulations can result in revocation of operating certification.
In July 1999, the IAA awarded Ryanair an air operator’s certificate, which is subject to routine audit
and review, in recognition of Ryanair’s satisfaction of the relevant EU requirements for the operation of
commercial air transport (“EU OPS 1”). The requirements of EU OPS 1 have been incorporated into European
law as prescribed in Regulation (EEC) 3922/91 and were applied in full on July 16, 2008. All current regulatory
requirements are addressed in the Ryanair Operations Manual Part A (as amended). The current Manual, Issue 3
Revision 7, was approved by the IAA on April 1, 2011.
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
security, etc.).
In June 2005, the Minister for Transport enacted legislation strengthening rights for air passengers
following the enactment of EU legislation requiring compensation of airline passengers who have been denied
boarding on a flight for which they hold a valid ticket (Regulation (EC) No. 261/2004), which came into force
on February 17, 2005. See “Item 3. Risk Factors—Risks Related to the Airline Industry—EU Regulation on
Passenger Compensation Could Significantly Increase Related Costs.”
The European Aviation Safety Agency. EASA is an agency of the EU that has been given specific
regulatory and executive tasks in the field of aviation safety. EASA was established through Regulation (EC)
No. 1592/2002 of the European Parliament and the Council of July 15, 2002. The purpose of EASA is to draw-
up common standards to ensure the highest levels of safety, oversee their uniform application across Europe and
promote them at the global level. The EASA formally started its work on September 28, 2003, taking over the
responsibility for regulating airworthiness and maintenance issues within the EU member states.
Eurocontrol. The European Organization for the Safety of Air Navigation (“Eurocontrol”) is an
autonomous European organization established under the Eurocontrol Convention of December 13, 1960.
Eurocontrol is responsible for, inter alia, the safety of air navigation and the collection of route charges for en
route air navigation facilities and services throughout Europe. Ireland is a party to several international
agreements concerning Eurocontrol. These agreements have been implemented in Irish law, which provides for
the payment of charges to Eurocontrol in respect of air navigation services for aircraft in airspace under the
control of Eurocontrol. The relevant legislation imposes liability for the payment of any charges upon the
operators of the aircraft in respect of which services are provided and upon the owners of such aircraft or the
managers of airports used by such aircraft. Ryanair, as an aircraft operator, is primarily responsible for the
payment to Eurocontrol of charges incurred in relation to its aircraft.
The legislation authorizes the detention of aircraft in the case of default in the payment of any charge
for air navigation services by the aircraft operator or the aircraft owner, as the case may be. This power of
detention extends to any equipment, stores or documents, which may be onboard the aircraft when it is detained,
and may result in the possible sale of the aircraft.