Ryanair 2011 Annual Report Download - page 75

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Ryanair’s Policy on Noise and Emissions. Ryanair is committed to reducing emissions and noise
through investments in “next generation” aircraft and engine technologies and the implementation of certain
operational and commercial decisions to minimize the environmental impact of its operations. According to the
latest Air Travel Carbon and Energy Efficiency Report published by Brighter Planet, Ryanair is the industry
leader in terms of environmental efficiency, and the Company is constantly working towards improving its
performance.
In December 2005, Ryanair completed the fleet replacement program it commenced in 1999. All of
Ryanair’s older Boeing 737-200A aircraft were replaced with Boeing 737-800 “next generation” aircraft, and
Ryanair now operates a single-aircraft-type fleet of Boeing 737-800 “next generation” aircraft with an average
age of just over three years. The design of the new aircraft is aimed at minimizing drag, thereby reducing the
rate of fuel burn and noise levels. The engines are also quieter and more fuel-efficient. Furthermore, by moving
to an all Boeing 737-800 “next generation” fleet, Ryanair reduced the unit emissions per passenger due to the
inherent capacity increase in the Boeing 737-800 aircraft. The Boeing 737-800 “next generation” aircraft have a
significantly superior fuel-burn to passenger-kilometer ratio than Ryanair’s former fleet of Boeing 737-200A
aircraft. See “—Aircraft” above for details on Ryanair’s fleet plan.
Ryanair has also installed winglets on all of its existing aircraft and all future aircraft will also be fitted
with winglets. Winglets reduce both the rate of fuel burn and carbon dioxide emissions by approximately 4%
and also reduce noise emissions.
In addition, Ryanair has distinctive operational characteristics that management believes are helpful to
the general environment. In particular, Ryanair:
• operates with a high-seat density of 189 seats and an all-economy configuration, as opposed to the
162 seats and two-class configuration of the Boeing 737-800 aircraft used by traditional network
airlines, reducing fuel burn and emissions per seat-kilometer flown;
• has reduced per-passenger emissions through higher load factors;
• better utilizes existing infrastructure by operating out of underutilized secondary and regional
airports throughout Europe, which limits the use of holding patterns and taxiing times, thus
reducing fuel burn and emissions and reducing the need for new airport infrastructure;
• provides direct services as opposed to connecting flights, in order to limit the need for passengers
to transfer at main hubs and thus reduces the number of take-offs and landings per journey from
four to two, reducing fuel burn and emissions per journey; and
• has no late-night departures of aircraft, reducing the impact of noise emissions.
Emissions Trading. On November 19, 2008, the European Council of Ministers adopted legislation to
add aviation to the EU Emissions Trading Scheme as of 2012. This scheme, which has thus far applied mainly
to energy producers, is a cap-and-trade system for CO2 emissions to encourage industries to improve their CO2
efficiency. Under the legislation, airlines will be granted initial CO2 allowances based on historical “revenue ton
kilometers” and a CO2 efficiency benchmark. Any shortage of allowances will have to be purchased in the open
market and/or at government auctions. The cost and amount of such allowances that Ryanair will have to buy in
order to cover the shortage that will arise in 2012 are not yet known. The Company will be in a position to
forecast its carbon credit requirements in respect of 2012 with a greater degree of certainty once the European
Commission has published certain figures permitting the calculation of the efficiency benchmark (expected in
late 2011). Management believes that this legislation is likely to have a negative impact on the European airline
industry. Ryanair takes its environmental responsibilities seriously and intends to continue to improve its
environmental efficiency and to minimize emissions.
Aviation Taxes. Ryanair is fundamentally opposed to the introduction of any aviation taxes, including
any environmental taxes, fuel taxes or emissions levies. Ryanair has and continues to offer the lowest fares in
Europe, to make passenger air travel affordable and accessible to European consumers. Ryanair believes that the
imposition of additional taxes on airlines will not only increase airfares, but will discourage new entrants into
the market, resulting in less choice for consumers. Ryanair believes this would ultimately have adverse effects