Ryanair 2012 Annual Report Download - page 74

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have alleged that some fees applied by airlines, including Ryanair, on an avoidable basis are in fact mandatory.
Ryanair amended its website to include information on fees in June 2012 and plans to incorporate further
changes to meet these requirements on its website in August 2012 and December 2012.
Registration of Aircraft
Pursuant to the Irish Aviation Authority (Nationality and Registration of Aircraft) Order 2002 (the
―Order‖), the IAA regulates the registration of aircraft in Ireland. In order to be registered or continue to be
registered in Ireland, an aircraft must be wholly owned by either (i) a citizen of Ireland or a citizen of another
member state of the EU having a place of residence or business in Ireland or (ii) a company registered in and
having a place of business in Ireland and having its principal place of business in Ireland or another member
state of the EU and not less than two-thirds of the directors of which are citizens of Ireland or of another
member state of the EU. As of the date of this report, seven of the nine directors of Ryanair Holdings are
citizens of Ireland or of another member state of the EU. An aircraft will also fulfill these conditions if it is
wholly owned by such citizens or companies in combination. Notwithstanding the fact that these particular
conditions may not be met, the IAA retains discretion to register an aircraft in Ireland so long as it is in
compliance with the other conditions for registration under the Order. Any such registration may, however, be
made subject to certain conditions. In order to be registered, an aircraft must also continue to comply with any
applicable provisions of Irish law. The registration of any aircraft can be cancelled if it is found that it is not in
compliance with the requirements for registration under the Order and, in particular: (i) if the ownership
requirements are not met; (ii) if the aircraft has failed to comply with any applicable safety requirements
specified by the IAA in relation to the aircraft or aircraft of a similar type; or (iii) if the IAA decides in any case
that it is not in the public interest for the aircraft to remain registered in Ireland.
Regulation of Competition
Competition/Antitrust Law. It is a general principle of EU competition law that no agreement may be
concluded between two or more separate economic undertakings that prevents, restricts or distorts competition
in the common market or any part of the common market. Such an arrangement may nevertheless be exempted
by the European Commission, on either an individual or category basis. The second general principle of EU
competition law is that any business or businesses having a dominant position in the EU common market or any
substantial part of the common market may not abuse such dominant position. Ryanair is subject to the
application of the general rules of EU competition law as well as specific rules on competition in the airline
sector.
An aggrieved person may sue for breach of EU competition law in the courts of a member state and/or
petition the European Commission for an order to put an end to the breach of competition law. The European
Commission also may impose fines and daily penalties on businesses and the courts of the member states may
award damages and other remedies (such as injunctions) in appropriate circumstances.
Competition law in Ireland is primarily embodied in the Competition Act 2002. This Act is modeled on
the EU competition law system. The Irish rules generally prohibit anti-competitive arrangements among
businesses and prohibit the abuse of a dominant position. These rules are enforced either by public enforcement
(primarily by the Competition Authority) through both criminal and civil sanctions or by private action in the
courts. These rules apply to the airline sector, but are subject to EU rules that override any contrary provisions
of Irish competition law. Ryanair has been subject to an abuse-of-dominance investigation by the Irish
Competition Authority in relation to service between Dublin and Cork. The Competition Authority closed its
investigation in July 2009 with a finding in favor of Ryanair.
State Aid. The EU rules control aid granted by member states to businesses on a selective or
discriminatory basis. The EU Treaty prevents member states from granting such aid unless approved in advance
by the EU. Any such grant of state aid to an airline is subject to challenge before the EU or, in certain
circumstances, national courts. If aid is held to have been unlawfully granted it may have to be repaid by the
airline to the granting member state, together with interest thereon. See ―Item 3. Key Information Risk
Factors Risks Related to the Company—The Company Is Subject to Legal Proceedings Alleging State Aid at
Certain Airports‖ and ―Item 8. Financial Information Other Financial Information Legal Proceedings.‖