Ryanair 2009 Annual Report Download - page 9

9
Growing to become the world’s favourite airline
In 2009, Ryanair was for the first time ranked by IATA as the world’s largest international airline by
passenger numbers. Ryanair can now rightfully claim to be the world’s “favourite” airline.
Fighting regulatory failure
Over the past year we have scored two notable successes in our campaign against regulatory failure. In
December 2008 the European Court of First Instance (ECFI) dismissed the European Commission’s 2004
finding of State Aid against our 2001 base cost agreement with Brussels Charleroi Airport. The Court correctly
found that Charleroi and Ryanair had complied with the “Market Economic Investor Principle (MEIP)” and so
our cost base did not comprise either a subsidy or State Aid. We warmly welcome this ECFI decision and our
people are now working closely with the EU Transport Commission to try to develop a better working
relationship. We welcome the support we have received in this regard from Commissioner Tajani, which we
believe will lead to better (pro-consumer) regulation in the air transport arena by the European Union.
The UK Competition Commission in October 2008 published the results of its investigation into the BAA
airport monopoly which highlighted the failure of “passive” regulation by the CAA and recommended the break
up of the UK BAA airport monopoly. Ryanair enthusiastically welcomes this decision, as we believe the only
way to improve the dreadful airport facilities provided at the BAA monopoly airports is separate ownership
leading at last to competition for the development of additional efficient capacity in the London area at lower
costs which will improve competition and customer choice for both airlines and passengers at both London
Gatwick and Stansted airports.
Sadly regulatory failure continues unchecked here in Ireland, where the Government owned DAA
monopoly remains protected, and its price increases rubberstamped by the useless Government appointed
Aviation Regulator. This regulator has repeatedly failed to protect consumers or airport users from the waste,
profligacy and regulatory gaming by the DAA monopoly. The DAA’s price increases are unjustified and
unwarranted, at a time of deflation and recession in Ireland when traffic at Dublin Airport is declining by up to
15% a month, which will result in a loss of 3 million passengers in 2009 alone. The Irish Government has
added to this traffic / tourism collapse by introducing a self defeating €10 visitor tax on all departures from Irish
airports. This senseless tax makes Irish airports and tourism even less competitive at a time when many other
European Governments (most notably the Belgians, Dutch, Greek and Spanish) have scrapped tourist taxes or
reduced airport charges to zero. This tourist tax will raise less than €90m in 2009, yet the Government will lose
more than €200m in VAT receipts from declining visitor spend, as visitors to Ireland plummet by up to 15% to
20% this year. Ryanair continues to call for the scrapping of this stupid and self defeating tax and we hope the
Irish Government will shortly follow the more enlightened tax policy of our Belgian, Dutch, Greek and Spanish
governments.