Ryanair 2009 Annual Report Download - page 43

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The Company is Dependent on Key Personnel. The Company’s success depends to a significant extent
upon the efforts and abilities of its senior management team, including Michael O’Leary, the Chief Executive
Officer, and key financial, commercial, operating and maintenance personnel. Mr. O’Leary’s current contract
may be terminated by either party upon 12 months’ notice. See “Item 6. Directors, Senior Management and
Employees—Compensation of Directors and Senior Management—Employment Agreements.” The Company’s
success also depends on the ability of its executive officers and other members of senior management to operate
and manage effectively, both independently and as a group. Although the Company’s employment agreements
with Mr. O’Leary and some of its other senior executives contain non-competition and non-disclosure
provisions, there can be no assurance that these provisions will be enforceable in whole or in part. Competition
for highly qualified personnel is intense, and either the loss of any executive officer, senior manager, or other
key employee without adequate replacement or the inability to attract new qualified personnel could have a
material adverse effect upon the Company’s business, operating results, and financial condition.
The Company Faces Risks Related to its Internet Reservations Operations and its Announced
Elimination of Airport Check-in Facilities. Approximately 99% of Ryanair’s flight reservations are made
through its website. Although the Company has established a contingency program whereby the website is
hosted in three separate locations, each of these locations accesses the same booking engine, located at a single
center, in order to make reservations.
A back-up booking engine is available to Ryanair to support its existing platform in the event of a
breakdown in this facility. Nonetheless, the process of switching over to the back-up engine could take some
time and there can be no assurance that Ryanair would not suffer a significant loss of reservations in the event of
a major breakdown of its booking engine or other related systems, which, in turn, could have a material adverse
affect on the Company’s operating results or financial condition.
In addition, in March 2006, Ryanair also commenced its Internet check-in service for passengers
traveling without bags. Internet check-in is part of a package of measures intended to improve service by
reducing airfares as well as reducing check-in and boarding gate lines. See “Item 4. Information on the
Company—Reservations / Ryanair.com.” The Company has deployed this system across its network. Any
disruptions to the Internet check-in service as a result of a breakdown in the relevant computer systems or
otherwise could have a material adverse impact on these service-improvement efforts. Moreover, the Company
has announced that, with effect from October 1, 2009, all passengers, including those traveling with bags and
non-EU nationals, will be required to use Internet check-in. The anticipated result of this requirement is that
Ryanair will reduce airport and handling costs, as a result of the need to have fewer check-in staff and rented
check-in desks. There can be no assurance, however, that this process will be successful or that consumers will
not switch to other carriers that provide standard check-in facilities, which would negatively affect the
Company’s results of operations and financial condition.