Ryanair 2012 Annual Report Download - page 60

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60
period. See ―Item 3. Key Information—Risk Factors—Risks Related to the Company—Changes in Fuel Costs
and Fuel Availability Affect the Company‘s Results and Increase the Likelihood that the Company May Incur
Losses‖ and ―—The Company May Not Be Successful in Raising Fares to Offset Increased Business Costs.‖
In recent years, in response to an operating environment characterized by high fuel prices, typically
lower seasonal yields and higher airport charges and/or taxes, Ryanair has adopted a policy of grounding a
certain portion of its fleet during the winter months (from November to March inclusive). In the winter months
of fiscal year 2012, Ryanair grounded approximately 80 aircraft and the Company announced in May 2012 that
it intends to ground approximately 80 aircraft during the winter months of fiscal year 2013. While seasonal
grounding does reduce the Company‘s operating costs, it also decreases Ryanair‘s potential to record both flight
and non-flight revenues. Decreasing the number and frequency of flights may also negatively affect the
Company‘s labor relations, including its ability to attract flight personnel interested in full-time employment.
See ―Item 3. Key Information—Risk Factors—Ryanair Has Decided to Seasonally Ground Aircraft.‖
ROUTE SYSTEM, SCHEDULING AND FARES
Route System and Scheduling
As of July 20, 2012, the Company offered over 1,500 scheduled short-haul flights per day serving
approximately 160 airports largely throughout Europe, and flying approximately 1,500 routes. The following
table lists Ryanair‘s bases of operations:
Bases of Operations
Alghero
Dublin
Manchester
Alicante
Baden-Baden
Dusseldorf (Weeze)
Edinburgh
Milan (Bergamo)
Nottingham East Midlands
Barcelona (Girona)
Faro
Palma Mallorca
Barcelona (El Prat)
Bari
Billund
Bologna
Frankfurt (Hahn)
Glasgow (Prestwick)
Gran Canaria
Kaunas
Paphos
Pescara
Pisa
Porto
Bournemouth
Lanzarote
Oslo (Rygge)
Birmingham
Leeds Bradford
Rome (Ciampino)
Bremen
Liverpool
Seville
Brindisi
London (Luton)
Shannon
Bristol
London (Stansted)
Stockholm (Skavsta)
Brussels (Charleroi)
Maastricht (a)
Tenerife South
Budapest
Cagliari
Madrid
Malaga
Trapani
Valencia
Cork
Malta
Wroclaw
(a) On July 3, 2012 Ryanair announced it would open a new base at Maastricht with effect from December 2012.
See Note 17, ―Analysis of operating revenues and segmental analysis,‖ to the consolidated financial
statements included in Item 18 for more information regarding the geographical sources of the Company‘s
revenue.
Management‘s objective is to schedule a sufficient number of flights per day on each of Ryanair‘s
routes to satisfy demand for Ryanair‘s low-fares service. Ryanair schedules departures on its most popular
routes at frequent intervals, normally between approximately 6:00 a.m. and 11:00 p.m. Management regularly
reviews the need for adjustments in the number of flights on all of its routes.
During the 2012 fiscal year, Ryanair announced 330 new routes across its network. See ―Risk
Factors—Risks Related to the Company—Ryanair Has Decided to Seasonally Ground Aircraft.‖