Ryanair 2008 Annual Report Download - page 33

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Emissions trading
Ryanair proves that air transport can be environmentally friendly whilst continuing to deliver huge
economic benefits in terms of the lowest cost air travel for consumers, increased tourism, regional and
social cohesion, job creation, inward investment, etc. In terms of the environment air transport only
accounts for less than 2% of total EU CO2 emissions compared to road transport which accounts for 9
times more and household emissions for 6 times more CO2 emissions than aviation. Nevertheless, the
European Commission is pushing to include air transport in the European Union Emissions Trading
Scheme (ETS), instead of focusing on the real and larger sources of CO2 emissions. The European
Parliament and the Council are currently considering the Commission’s proposals in this respect.
The effect of the ETS is likely to impose an “emissions levy” on airlines, particularly those that
have already heavily invested in cleaner aircraft technology and already engage in efficient operations
as they will have no further headroom to reduce emissions. We believe that this additional cost burden
on airlines will increase fares and damage the competitiveness of the industry (see below).
Ryanair and the European Low Fares Airline Association (ELFAA) have called on the European
Commission to conduct a proper cost/benefit analysis before proceeding with any legislative proposals
that could seriously damage the industry. A report issued by Ernst & Young and York Aviation
estimated that the cost to aviation of being included in ETS could amount to over 14 billion per annum
and result in 42,000 job losses. As noted above, Ryanair takes its environmental responsibilities very
seriously and will continue to improve its efficiency and minimise emissions. We believe that the
introduction of ETS would not affect this and will only punish the more efficient producers and lead to
increased costs for ordinary consumers.
Fuel tax/emissions levy
Ryanair is fundamentally opposed to the introduction of any fuel tax or emissions levy. Ryanair
continues to offer the lowest fares in Europe making air travel affordable to ordinary European
consumers. Ryanair believes that the imposition of a tax on fuel or emissions will not only increase
airfares but will most likely discourage new entrants into the market resulting in less choice for
consumers. This will have adverse effects on the European economy generally.
Furthermore the introduction of a fuel tax or emissions levy only at the European level would
distort competition between airlines operating solely within Europe and those also operating outside
long haul flights. We believe that the introduction of such a tax/levy would also be incompatible with
international law.
Aircraft noise regulations
Ryanair is the European leader in minimising noise nuisance through the use of newer, quieter
aircraft (all Ryanair aircraft fully comply with current noise requirements). The use of winglets further
reduces noise nuisance by 6.5%, as do other operational measures adopted by Ryanair (absence of night
operations etc.). Certain airports in the U.K. (including London Stansted and London Gatwick) and
continental Europe have established local noise restrictions, including limits on the number of hourly or
daily operations or the time of such operations and Ryanair fully complies with the restrictions.