Ryanair 2012 Annual Report Download - page 72

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The CAR also has responsibility for licensing Irish airlines, subject to the requirements of EU law. It
issues operating licenses under the provisions of EU Regulation 1008/2008 (formerly 2407/92). An operating
license is an authorization permitting the holder to transport passengers, mail and/or cargo by air. The criteria
for granting an operating license include, inter alia, an air carrier‘s financial fitness, the adequacy of its
insurance, and the fitness of the persons who will manage the air carrier. In addition, in order to obtain and
maintain an operating license, Irish and EU regulations require that (i) the air carrier must be owned and
continue to be owned directly or through majority ownership by EU member states and/or nationals of EU
member states and (ii) the air carrier must at all times be effectively controlled by such EU member states or EU
nationals. The CAR has broad authority to revoke an operating license. See ―Item 10. Additional Information––
Limitations on Share Ownership by Non-EU Nationals.‖ See also ―Item 3. Risk Factors––Risks Related to
Ownership of the Company‘s Ordinary Shares or ADRs—EU Rules Impose Restrictions on the Ownership of
Ryanair Holdings‘ Ordinary Shares by Non-EU nationals and the Company has Instituted a Ban on the Purchase
of Ordinary Shares by Non-EU Nationals‖ above.
The CAR is also responsible for deciding whether a regulated airport should be coordinated or fully
coordinated under Council Regulation (EEC) No. 95/93 (as amended by Regulation (EC) No. 793/2004) on slots
and for authorizing ground handling operations under Council Directive 96/67/EC and its implementing
legislation. In April 2005, the CAR announced that Dublin Airport would be fully slot-coordinated beginning in
March 2006. Ryanair successfully challenged this decision in the Irish High Court, and the decision was
overturned in July 2006. In February 2007, the CAR re-imposed full coordination at Dublin Airport. Ryanair
again challenged this decision in the Irish High Court, but subsequently withdrew the challenge. See ―—Slots‖
below for additional information regarding this litigation.
Ryanair‘s current operating license became effective on December 1, 1993, and is subject to periodic
review. The Flight Operations Department is also subject to ongoing review by the Irish Aviation Authority (the
IAA), which reviews the department‘s audits, including flight audits, training audits, document audits, and
quality audits. Ryanair‘s current Air Operator Certificate No IE 7/94 was issued on January 26, 2011.
Irish Aviation Authority. The IAA is primarily responsible for the operational and regulatory function
and services relating to the safety and technical aspects of aviation in Ireland. To operate in Ireland and the EU,
an Irish air carrier is required to hold an operator‘s certificate granted by the IAA attesting to the air carrier‘s
operational and technical competence to conduct airline services with specified types of aircraft. The IAA has
broad authority to amend or revoke an operator‘s certificate, with Ryanair‘s ability to continue to hold its
operator‘s certificate being subject to ongoing compliance with applicable statutes, rules and regulations
pertaining to the airline industry, including any new rules and regulations that may be adopted in the future.
The IAA is also responsible for overseeing and regulating the operations of Irish air carriers. Matters
within the scope of the IAA‘s regulatory authority include: air safety; aircraft certification; personnel licensing
and training; maintenance, manufacture, repair, airworthiness, and operation of aircraft; implementation of EU
legislation; aircraft noise; and ground services. Each of the Company‘s aircraft is required to have a Certificate
of Airworthiness, which is issued by the IAA. The validity of Certificates of Airworthiness is subject to the
review of a committee of the IAA. Each certificate is generally valid for a 12-month period. In March 2009,
Ryanair received ―Sub-Part (I) approval‖ from the IAA, which gives Ryanair the authority to extend the validity
of its certificates, subject to certain record checks and physical aircraft inspections being performed by
Ryanair‘s quality department. The Company‘s flight personnel, flight and emergency procedures, aircraft, and
maintenance facilities are subject to periodic inspections and tests by the IAA. The IAA has broad regulatory
and enforcement powers, including the authority to require reports; inspect the books, records, premises, and
aircraft of a carrier; and investigate and institute enforcement proceedings. Failure to comply with IAA
regulations can result in revocation of operating certification.
In July 1999, the IAA awarded Ryanair an air operator‘s certificate, which is subject to routine audit
and review, in recognition of Ryanair‘s satisfaction of the relevant EU requirements for the operation of
commercial air transport (―EU OPS 1‖). The requirements of EU OPS 1 have been incorporated into European
law as prescribed in Regulation (EEC) 3922/91 and were applied in full on July 16, 2008. All current regulatory
requirements are addressed in the Ryanair Operations Manual Part A (as amended). The current Manual, Issue 3
Revision 7, was approved by the IAA on April 1, 2011.
Department of Transport. The Department of Transport (―DOT‖) is responsible for implementation of
certain EU and Irish legislation and international standards relating to air transport (e.g., noise levels, aviation
security, etc.).