Ryanair 2009 Annual Report Download - page 71

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Airport charges
The EU Airport Charges Directive of March 2009 sets forth general principles that are to be followed
by airports when setting airport charges and provides for an appeals procedure for airlines in the event they are
not satisfied with the level of charges. However, Ryanair does not believe that this procedure will be effective or
that it will constrain those airports that are currently abusing their dominant position. This legislation may in
fact lead to higher airport charges, depending on how its provisions are implemented and applied by EU
member states and subsequently by the courts. The directive is to be transposed into national legislation
throughout the EU by March 2011.
Slots
Currently, the majority of Ryanair’s bases of operations have no “slot” allocations; however, traffic at a
substantial number of the airports Ryanair serves, including its primary bases, are regulated by means of “slot”
allocations, which represent authorizations to take off or land at a particular airport within a specified time
period. In addition, the airports in Edinburgh and Reus, which became Ryanair bases in September 2008 and
November 2008, respectively, are regulated through slot allocations. EU law currently regulates the acquisition,
transfer, and loss of slots. Applicable EU regulations currently prohibit the buying or selling of slots for cash.
The European Commission adopted a regulation in April 2004 (Regulation (EC) No. 793 / 2004) that made
some minor amendments to the current allocation system, allowing for limited transfers of, but not trading in,
slots. Slots may be transferred from one route to another by the same carrier, transferred within a group or as
part of a change of control of a carrier, or swapped between carriers. In April 2008, the European Commission
issued a communication on the application of the slot allocation regulation, signaling the acceptance of
secondary trading of airport slots between airlines. This is expected to allow more flexibility and mobility in the
use of slots and will further enhance possibilities for market entry. Any future proposals that might create a
secondary market for the auction of slots or allow trading of slots among airlines could create a potential source
of revenue for certain of Ryanair’s current and potential competitors, many of which have many more slots
allocated at present than Ryanair. Slot values depend on several factors, including the airport, time of day
covered, the availability of slots and the class of aircraft. Ryanair’s ability to gain access to and develop its
operations at slot-controlled airports will be affected by the availability of slots for takeoffs and landings at these
specific airports. New entrants to an airport are currently given certain privileges in terms of obtaining slots, but
such privileges are subject to the grandfathered rights of existing operators that are utilizing their slots. While
Ryanair generally seeks to avoid slot-controlled airports, there is no assurance that Ryanair will be able to obtain
a sufficient number of slots at the slot-controlled airports that it desires to serve in the future at the time it needs
them or on acceptable terms.
Other
Health and occupational safety issues relating to the Company are largely addressed in Ireland by the
Safety, Health and Welfare at Work Act, 1989; the Safety, Health and Welfare at Work (General Application)
Regulations, 1993; and other regulations under that act. Although licenses or permits are not issued under such
legislation, compliance is monitored by the Health and Safety Authority (the “Authority”), which is the
regulating body in this area. The Authority periodically reviews Ryanair’s health and safety record and when
appropriate, issues improvement notices or prohibition notices. Ryanair has responded to all such notices to the
satisfaction of the Authority. Other safety issues are covered by the Irish Aviation Orders, which may vary from
time to time.
The Company’s operations are subject to the general laws of Ireland and, insofar as they are applicable
in Ireland, the laws of the EU. The Company may also become subject to additional regulatory requirements in
the future. The Company is also subject to local laws and regulations at locations where it operates and the
regulations of various local authorities that operate the airports it serves.
DESCRIPTION OF PROPERTY
For certain information about each of the Company’s key facilities, see “—Facilities” above.
Management believes that the Company’s facilities are suitable for its needs and are well maintained.
Item 4A. Unresolved Staff Comments
There are no unresolved staff comments.