Ryanair 2009 Annual Report Download - page 69

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Regulation of Competition
Competition / Antitrust Law. It is a general principle of EU competition law that no agreement may be
concluded between two or more separate economic undertakings that prevents, restricts or distorts competition
in the common market or any part of the common market. Such an arrangement may nevertheless be exempted
by the European Commission, on either an individual or category basis. The second general principle of EU
competition law is that any business or businesses having a dominant position in the EU common market or any
substantial part of the common market may not abuse such dominant position. Ryanair is subject to the
application of the general rules of EU competition law as well as specific rules on competition in the airline
sector (principally, Council Regulation (EEC) 3975 / 87, as amended).
An aggrieved person may sue for breach of EU competition law in the courts of a member state and/or
petition the European Commission for an order to put an end to the breach of competition law. The European
Commission also may impose fines and daily penalties on businesses and the courts of the member states may
award damages and other remedies (such as injunctions) in appropriate circumstances.
Competition law in Ireland is primarily embodied in the Competition Act 2002. This Act is modeled on
the EU competition law system. The Irish rules generally prohibit anti-competitive arrangements among
businesses and prohibit the abuse of a dominant position. These rules are enforced either by public enforcement
(primarily by the Competition Authority) through both criminal and civil sanctions or by private action in the
courts. These rules apply to the airline sector, but are subject to EU rules that override any contrary provisions
of Irish competition law. Ryanair has been subject to an investigation by the Irish Competition Authority in
relation to service between Dublin and Cork. The Company is still awaiting the outcome of this investigation.
State Aid. The EU rules control aid granted by member states to businesses on a selective or
discriminatory basis. The EU Treaty prevents member states from granting such aid unless approved in advance
by the EU. Any such grant of state aid to an airline is subject to challenge before the EU or, in certain
circumstances, national courts. If aid is held to have been unlawfully granted it may have to be repaid by the
airline to the granting member state, together with interest thereon. See “Item 3. Key InformationRisk
FactorsRisks Related to the Company—The Company Is Subject to Legal Proceedings Alleging State Aid at
Certain Airports” and “Item 8. Financial InformationOther Financial InformationLegal Proceedings.”
Environmental Regulation
Aircraft Noise Regulations. Ryanair is subject to international, national and, in some cases, local noise
regulation standards. EU and Irish regulations have required that all aircraft operated by Ryanair comply with
Stage 3 noise requirements since April 1, 2002. All of Ryanair’s aircraft currently comply with these
regulations. 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.
Company Facilities. Environmental controls are generally imposed under Irish law through property
planning legislation, specifically the Local Government (Planning and Development) Acts of 1963 to 1999, the
Planning and Development Act 2000 and regulations made thereunder. At Dublin Airport, Ryanair operates on
land controlled by the DAA. Planning permission for its facilities has been granted in accordance with both the
zoning and planning requirements of Dublin Airport. There is also specific Irish environmental legislation
implementing applicable EU directives and regulations, to which Ryanair adheres. From time to time, noxious
or potentially toxic substances are held on a temporary basis within Ryanair’s engineering facilities at Dublin
Airport, Glasgow (Prestwick) and London (Stansted). However, at all times Ryanair’s storage and handling of
these substances complies with the relevant regulatory requirements. At Ryanair’s Glasgow (Prestwick) and
London (Stansted) maintenance facilities, all normal waste is removed in accordance with the Environmental
Protection Act of 1996 and Duty of Care Waste Regulations. For special waste removal, Ryanair operates under
the Special Waste Regulations 1998. At all other facilities Ryanair adheres to all local and EU regulations.
Ryanair’s Policy on Noise and Emissions. Ryanair is committed to reducing emissions and noise
through investments in “next generation” aircraft and engine technologies and the implementation of certain
operational and commercial decisions to minimize the environmental impact of its operations. Ryanair is
currently the industry leader in terms of environmental efficiency and is constantly working towards improving
its performance.