Ryanair 2009 Annual Report Download - page 52

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52
fuel costs and reduced economic growth (or economic contraction) in the economies in which it operates. The
Company has aimed to meet these challenges by: (i) selectively grounding aircraft, including 20 aircraft that the
Company grounded over the 2008-2009 winter season; (ii) disposing of aircraft (increasing its disposals from
six in the 2008 fiscal year to approximately 17 in the 2009 fiscal year); (iii) controlling labor and other costs,
including through wage freezes, selective redundancies and the introduction of Internet check-in; and (iv)
renegotiating contracts with existing suppliers, airports and handling companies. There can be no assurance that
the Company will be successful in doing these things or that doing so will allow the Company earn profits in
any period. See “Item 3. Key Information—Risk Factors—Risks Related to the Company—Changes in Fuel
Costs and Fuel Availability Affect the Company’s Results and Increase the Likelihood that the Company May
Incur Losses” and “—The Company May Not Be Successful in Raising Fares to Offset Increased Business
Costs.”
The Company has recently announced capacity reductions, primarily at Dublin Airport, the most
expensive airport in terms of airport charges that Ryanair serves. As a result of this airport’s high charges,
certain routes are not economically viable to operate during the winter when the Company typically experiences
lower load factors and fares. In June 2009, Ryanair announced that it was reducing its fleet at Dublin Airport to
17 by summer 2009 and 16 by winter 2009 (down from 22 in summer 2008 and 20 in winter 2008) as a result of
rising airport charges and the introduction of an Air Travel Tax of €10 on all passengers departing from Irish
airports on routes longer than 300 kilometers. The Company has also recently announced that it plans to freeze
all growth in the United Kingdom and to reduce capacity at its London (Stansted) base by 40% between October
2009 and March 2010. See “Risk Factors—Risks Related to the Company—Ryanair Has Decided to Freeze its
Development in the U.K. Market and Curtail Certain U.K. Operations.”