Ryanair 2012 Annual Report Download - page 101

101
Employment and Bonus Agreement with Mr. O‟Leary
Mr. O‘Leary‘s current employment agreement with the Company is dated July 1, 2002 and can be
terminated by either party upon 12 months‘ notice. Pursuant to the agreement, Mr. O‘Leary serves as Chief
Executive Officer at a current annual gross salary of €768,000, subject to any increases that may be agreed
between the Company and Mr. O‘Leary. Mr. O‘Leary is also eligible for annual bonuses as determined by the
Board of Directors of the Company; the amount of such bonuses paid to Mr. O‘Leary in the 2012 fiscal year
totaled €504,000. Mr. O‘Leary is subject to a covenant not to compete with the Company within the EU for a
period of two years after the termination of his employment with the Company. Mr. O‘Leary‘s employment
agreement does not contain provisions providing for compensation on its termination.
EMPLOYEES AND LABOR RELATIONS
The following table sets forth the details of Ryanair‘s team at each of March 31, 2012, 2011 and 2010:
Number of Personnel at March 31,
Classification
2012
2011
2010
Management ................................
99
95
99
Administrative ................................
280
275
276
Maintenance ................................
138
149
180
Ground Operations ................................
243
268
297
Pilots ..........................................................
2,429
2,344
2,032
Flight Attendants* ................................
5,199
5,429
4,284
Total ...........................................................
8,388
8,560
7,168
* Decrease on prior year due to lower aircraft in operation in March 2012 and cabin crew staff being furloughed.
Ryanair‘s pilots, flight attendants and maintenance and ground operations personnel undergo training,
both initial and recurrent. A substantial portion of the initial training for Ryanair‘s flight attendants is devoted to
safety procedures, and cabin crew are required to undergo annual evacuation and fire drill training during their
tenure with the airline. Ryanair also provides salary increases to its engineers who complete advanced training
in certain fields of aircraft maintenance. Ryanair utilizes its own Boeing 737-800 aircraft simulators for pilot
training.
IAA regulations require pilots to be licensed as commercial pilots with specific ratings for each aircraft
to be flown. In addition, IAA regulations require all commercial pilots to be medically certified as physically fit.
At March 31, 2012, the average age of Ryanair‘s pilots was 34 years and their average period of employment
with Ryanair was 4.8 years. Licenses and medical certification are subject to periodic re-evaluation and require
recurrent training and recent flying experience in order to be maintained. Maintenance engineers must be
licensed and qualified for specific aircraft types. Flight attendants must undergo initial and periodic competency
training. Training programs are subject to approval and monitoring by the IAA. In addition, the appointment of
senior management personnel directly involved in the supervision of flight operations, training, maintenance and
aircraft inspection must be satisfactory to the IAA. Based on its experience in managing the airline‘s growth to
date, management believes that there is a sufficient pool of qualified and licensed pilots, engineers and
mechanics within the EU to satisfy Ryanair‘s anticipated future needs in the areas of flight operations,
maintenance and quality control and that Ryanair will not face significant difficulty in hiring and continuing to
employ the required personnel. Ryanair has also been able to satisfy its needs for additional pilots through the
use of contract agencies. These contract pilots are included in the table above. In addition, Ryanair has also
been able to satisfy its needs for additional flight attendants through the use of contract agencies. These contract
flight attendants are included in the table above.
Ryanair has licensed approved organizations in Sweden and Holland to operate pilot training courses
using Ryanair‘s syllabus, in order to grant Boeing 737 type-ratings. Each trainee pilot must pay for his or her
own training and, based on his or her performance, he or she may be offered a position operating on Ryanair
aircraft. This program enables Ryanair to secure a continuous stream of type-rated co-pilots.