Ryanair 2008 Annual Report Download - page 18

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As a result of the retirement of the Boeing 737-200 aircraft, Ryanair required its pilots to undergo a
conversion training process to enable them to fly the new Boeing 737-800 aircraft. Starting in the
autumn of 2004, Ryanair made a number of written offers to its Dublin based pilots to enable them to
participate in a re-training process in order to obtain the correct type rating for flying the Boeing 737-
800 aircraft. After rejecting a series of offers, all of these pilots were trained on the Boeing 737-800
either by paying in advance the 115,000 cost of the conversion training, or by signing a 5 year bond, in
which case the training was provided free of charge as long as the pilots remained in employment with
Ryanair for a period of at least 5 years. In October 2007 the Dublin pilots negotiated a four year
comprehensive agreement on pay and rosters. The two sets of proceedings before the Irish Labour
Relations Commission and the Irish Labour Court were dropped by the pilots.
In the Irish High Court 64 pilots (only 13 of whom remain in the Company’s employment) have
initiated proceedings claiming that the terms of the bond infringed their freedom of association rights
and their right to allow trade unions to negotiate on their behalf.
While Ryanair believes these court proceedings to be without merit and is contesting the pilots’
claims, Ryanair could face potential sanctions in an amount up to a maximum of twice the annual salary
of the pilots involved if the Labour Relations Commission rules in favour of the pilots.
Recruitment and promotion
During the year 1,373 of our people (23%) were promoted internally within the Group, and Ryanair
employed over 1,400 more staff at the year end compared to the preceding year.
Safety
Safety in the airline remains an absolute priority. This is Ryanair’s 23rd year of safe operations.
Ryanair has extensive safety training programmes to ensure the recruitment of suitably qualified pilots,
cabin crew, ground crews and maintenance personnel. In addition, the Group operates and maintains all
of its aircraft in accordance with the highest European Aviation Industry Standards. Ryanair is
regulated by the Irish Aviation Authority.
At each Board Meeting a report, prepared by the Ryanair Safety Committee, is circulated in
advance and is reviewed by the Board. The Safety Committee comprises Michael Horgan
(Chairperson) a Main Board Director, the Director of Flight and Ground Operations, the Chief Pilot, the
Flight Safety Officer, the Director of Engineering, the Director of Personnel and Inflight, the Quality
Manager-Engineering, the Deputy Director - Ground Operations, the Deputy Director - Safety, the
Health and Safety Officer, the Chief Engineer and the Flight Safety Manager. The Safety Committee
meets on a quarterly basis and reports directly to the Board of Directors. The Flight Safety Manager is
responsible for monitoring flight safety. The Group also has a Health and Safety Manager who is
responsible for overseeing health and safety in all areas. The Group continues to operate extensive
training and safety programmes to ensure the health and safety of all its passengers and employees.
Critical accounting policies
Details of our critical accounting policies are set out in note 1 to the consolidated financial
statements.