Ryanair 2016 Annual Report Download - page 77

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As part of its non-flight scheduled and Internet-related services, Ryanair incentivizes ground service providers at
many of the airports it serves to levy correct excess baggage charges for any baggage that exceeds Ryanair’s published
baggage allowances and to collect these charges in accordance with Ryanair’s standard terms and conditions. Excess
baggage charges are recorded as non-flight scheduled revenue.
Ryanair primarily markets accommodation services and travel insurance through its website. For hotel and
accommodation services, Ryanair currently has a contract with Booking.com to market hotels during and after the booking
process and Ryanair receives a commission on these sales. The accommodation business went out to tender in July 2016,
and a new multi-supplier solution is under development for quarter 3, fiscal 2017. Ryanair offers car hire services via a
contract with CarTrawler, which replaced previous supplier Hertz in September 2015.
Ryanair also sells some bus and rail tickets onboard its aircraft and through its website. In addition, Ryanair
markets car parking, attractions and activities on its website, with the latter having gone on sale in-flight in spring 2012.
Ryanair sells gift vouchers on its website, which are redeemable online. In May 2009, Ryanair started to offer its
passengers the possibility of receiving an SMS (text message) when booking, at a modest fee, to inform them of their flight
confirmation details.
In fiscal year 2012, Ryanair rolled out handheld Electronic Point of Sale (“EPOS”) devices across its route
network. These EPOS devices replaced manual and paper based systems on-board the aircraft. The EPOS device enables
cabin crew to sell and record their on-board sales transactions more efficiently and generate vastly improved management
sales reporting. The EPOS device also issues bus and rail tickets and tickets for tourist attractions. A new version of the
EPOS device was rolled out in the summer of 2015.
In fiscal year 2011, Ryanair began offering reserved seating in eighteen extra legroom seats on each aircraft for a
fee on certain routes and this feature was rolled out to all routes in fiscal year 2012. In February 2014, Ryanair introduced
fully allocated seating on each of its flights. Passengers can, for a modest premium, reserve seats at the front of the aircraft
and at the overwing exits. All other seats can be reserved for a lower fee. In the event a passenger does not wish to purchase
an allocated seat, a random seat will be allocated during the booking process.
In November 2013, the Company launched a new website which reduced the number of clicks to make a booking.
At the same time, the Company reduced the exposure of certain other ancillary products during the booking process on the
website which had a negative impact on sales along with a reduction of certain penalty fees and charges at airports. The
Company anticipates that the reduction in revenues arising from these changes will be offset by the increased revenues
arising from allocated seating and, over time, enhanced selling opportunities that will arise from the digital personalization
of offers to our customers via the new website and mobile app launched in October 2015, such as through the introduction
of fast-track and priority boarding. See “Item 3 Key Information—Risk Factors—Risks related to the Company—Ryanair
May Not Achieve All of the Expected Benefits of its Recent Strategic Initiatives”.
MAINTENANCE AND REPAIRS
General
As part of its commitment to safety, Ryanair endeavors to hire qualified maintenance personnel, provide proper
training to such personnel, and maintain its aircraft in accordance with EASA Regulations and European industry
standards. While Ryanair seeks to maintain its fleet in a cost-effective manner, management does not seek to extend
Ryanair’s low-cost operating strategy to the areas of maintenance, training or quality control.
Ryanair’s quality assurance department deals with oversight of all maintenance activities in accordance with
EASA Part 145. EASA, which established Part 145, came into being on September 28, 2003; through the adoption of
Regulation (EC) No. 1592/2002 of the European Parliament, and its standards superseded the previous Joint Aviation
Authority (“JAA”) requirements. See “Government RegulationRegulatory Authorities” below.
Ryanair is itself an EASA Part 145-approved maintenance organization and provides its own routine aircraft
maintenance and repair services. Ryanair also performs certain checks on its aircraft, including pre-flight and daily checks