Ryanair 2011 Annual Report Download - page 77

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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.
Item 5. Operating and Financial Review and Prospects
The following discussion should be read in conjunction with the audited consolidated financial
statements of the Company and the notes thereto included in Item 18. Those consolidated financial statements
have been prepared in accordance with IFRS.
HISTORY
Ryanair’s current business strategy dates to the early 1990s, when a new management team, including
the current chief executive, commenced the restructuring of Ryanair’s operations to become a low-fares airline
based on the low-cost operating model pioneered by Southwest Airlines Co. in the United States. During the
period between 1992 and 1994, Ryanair expanded its route network to include scheduled passenger services
between Dublin and Birmingham, Manchester and Glasgow (Prestwick). In 1994, Ryanair began standardizing
its fleet by purchasing used Boeing 737-200A aircraft to replace substantially all of its leased aircraft. Beginning
in 1996, Ryanair continued to expand its service from Dublin to new provincial destinations in the U.K. In
August 1996, Irish Air, L.P., an investment vehicle led by David Bonderman and certain of his associates at the
Texas Pacific Group, acquired a minority interest in the Company. Ryanair Holdings completed its initial public
offering in June 1997.
From 1997 through June 30, 2011, Ryanair launched service on more than 1,300 routes throughout
Europe and also increased the frequency of service on a number of its principal routes. During that period, in
addition to Dublin, Ryanair established 44 airports as bases of operations. See “Item 4. Information on the
Company—Route System, Scheduling and Fares” for a list of these bases. Ryanair has increased the number of
booked passengers from 4.9 million in the 1999 fiscal year to approximately 72.1 million in the 2011 fiscal year.
Ryanair had 272 Boeing 737-800 aircraft as of June 30, 2011, and now serves approximately 160 airports with a
team of over 8,500 people.
Ryanair expects to have 294 aircraft in its operating fleet by March 31, 2012. During the period
through March 2013, the Company expects to take delivery of additional Boeing 737-800 aircraft that, net of
planned retirements and lease terminations, are expected to increase the size of the Company’s fleet to 299
aircraft. See “Liquidity and Capital Resources” and “Item 4. Information on the CompanyAircraft” for
additional details.
BUSINESS OVERVIEW
Since Ryanair pioneered its low-fares operating model in Europe in the early 1990s, its passenger
volumes and scheduled passenger revenues have increased significantly because it has substantially increased
capacity and demand has been sufficient to match the increased capacity. Ryanair’s annual booked passenger
volume has grown from approximately 945,000 passengers in the calendar year 1992 to approximately 72.1
million passengers in the 2011 fiscal year.
Ryanair’s revenue passenger miles (“RPMs”) increased approximately 19% from 44,841.1 million in
the 2010 fiscal year to 53,256.9 million in the 2011 fiscal year due primarily to an increase of approximately
19% in scheduled available seat miles (“ASMs”) from 53,469.6 million in the 2010 fiscal year to 63,358.3