Ryanair 2005 Annual Report Download - page 16

We have retained the grand slam by beating all of the other
major European airlines in terms of customer service delivery.
(1) We charge the lowest fares. (2) We operate the most on-
time flights. (3) We have the fewest cancellations, and (4) We
lose the fewest number of bags. These figures are verified by
both the CAA in the UK and the European Association of
Airlines and proves that passengers who come to Ryanair for
our lowest prices, continue to fly with us for our No.1 customer
service.
Over the past 12 months we operated in excess of 250,000
flights and our on-time performance has continued to improve.
During the period from January to March 2005 (the last period
for which comparable statistics are available) our on-time
performance was 89.4%. The statistics shown in the table
below demonstrate that Ryanair continues to outperform its
European counterparts during this period.
In terms of cancellations Ryanair recorded the fewest
cancellations with a completion rate of 99.1%. In terms of lost
bags and customer complaints, both saw a further decline last
year to 0.62 of a bag lost per thousand passengers and less
than 0.43 complaints per thousand passengers as the
following tables demonstrate.
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People
Our people who deliver this service on a daily basis continue to
share in our success. Over the past year despite our enormous
growth and the spiralling cost of oil, we have increased the
basic pay of our people across the board by a minimum of 3%,
an increase that is significantly greater than that granted by
most of our competitors. Average pay in Ryanair continues to
be amongst the highest of any of the European scheduled
airlines, and our people continue to enjoy an industry leading
package of high salary, profitable share options, industry
leading rostering, and rapid promotion prospects.
Our employment numbers over the past 12 months have
increased by 18% to 2,700, and we expect this figure to
exceed 3,000 over the coming 12 months. Ryanair continues
its policy of negotiating directly with all of our people, and in
return we try to tailor their working conditions and rosters to
suit them, as well as keeping their pay rates ahead of our
unionised competitors.
Irish airports
Developments among Irish airports over the past 12 months
have highlighted ever more clearly the beneficial effects of
competition and the damaging effect of monopoly. As a result
of being freed from the shackles of Dublin Airport, Shannon
Airport have negotiated a long-term low cost traffic growth
arrangement with Ryanair which has seen Shannon become
our 11th base. Ryanair traffic there will grow from less than
300,000 last year to over 1.5 million in the first 12 months of
operation. We now have three aircraft based in Shannon, we
are operating 14 routes, with two more (Bristol and Nantes)
being added this Winter. We have every confidence that we will
achieve our objective of delivering 2 million passenger per
annum at Shannon Airport by the fifth year of the
commencement of the base.
(Continued)
Chief Executive’s Report
6
ANNUAL REPORT & FINANCIAL STATEMENTS 2005
02/03
0.80
0.70
0.60
0.50
0.40
0.20
0.20
0.10
0.00
0.74
0.54
0.43
Ryanair 89.4%
AIitalia 82.5%
Air France 80.5%
Iberia 80.3%
SAS 79.6%
Austrian 79.4%
Lufthansa 79.3%
Easyjet 78.3%
British Airways 74.2%
* Source: Ryanair monthly statistics and Association of European Airlines
monthly statistics: Jan to Mar 2005
RYANAIR NO. 1 for punctuality
% on time*
Ryanair 49,055
Easyjet 46,901
British Airways 45,077
Air France 43,124
Lufthansa 41,912
*Source: Based on most recently published annual reports and average pay
excluding social welfare and pension costs.
Average Pay*
03/04 04/05