Ryanair 2016 Annual Report Download - page 78

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at some of its bases, as well as A-checks at its Dublin, London (Stansted), Glasgow (Prestwick), Bremen, Kaunas and
Frankfurt (Hahn) facilities. Since December 2003, Ryanair has operated a hangar facility at its base at Glasgow (Prestwick)
in Scotland, where both A-checks and C-checks are performed on the fleet of Boeing 737-800 aircraft. The facility
performs up to four C-checks per week and Ryanair opened a new C-check hangar facility in Kaunas, Lithuania in January
2013 where it carries out between one and two light C-checks per week, enabling Ryanair to perform all of the heavy
maintenance that is currently required on its Boeing 737-800 fleet in-house. In January 2014, Ryanair opened another
single bay hangar facility in Kaunas.
Ryanair opened a five-bay hangar and stores facility at its London (Stansted) airport base in October 2008 to
allow Ryanair to carry out additional line maintenance on its expanding fleet. This facility also incorporates four flight
simulator devices, together with a cabin crew trainer and associated training rooms. Ryanair has completed the building of
a separate training facility adjacent to the hangar to accommodate a full size 737NG training aircraft to allow for cabin
crew and engineering training. Ryanair carries out A-checks and line maintenance in its single-bay aircraft hangar facility
in Bremen. Ryanair has also entered into a 30-year sole-tenancy agreement with Frankfurt (Hahn) airport and has taken
acceptance of a two-bay hangar and stores facility that also incorporates a two-bay simulator-training center. This facility
was completed in January 2011 and allows Ryanair to carry out additional line maintenance including A-checks. Ryanair
completed the construction of a single bay hangar in Bergamo, Italy in June 2016 which will be used for line maintenance
activities and A-checks.
Maintenance and repair services that may become necessary while an aircraft is located at some of the other
airports served by Ryanair are provided by other EASA Part 145-approved contract maintenance providers. Aircraft return
each evening to Ryanair’s bases, where they are examined by either Ryanair’s approved personnel or by local EASA Part
145-approved companies.
Heavy Maintenance
As noted above, Ryanair currently has sufficient capacity to be able to carry out all of the routine maintenance
work required on its Boeing 737-800 fleet itself. Ryanair opened a new three-bay maintenance hangar at Glasgow
(Prestwick) airport in winter 2010 to accommodate the additional maintenance requirements arising from its expanding
and aging fleet and opened a new C-check facility in Kaunas in January 2013 to handle the increased C-check requirements
driven by fleet expansion.
Ryanair contracts out engine overhaul service for its Boeing 737-800 aircraft to General Electric Engine Services
pursuant to a 10-year agreement with an option for a 10-year extension, which was signed in 2004 and subsequently
extended for three years to November 30, 2017. This comprehensive maintenance contract provides for the repair and
overhaul of the CFM56-7B series engines fitted to the first 155 of Ryanair’s Boeing 737-800 aircraft, the repair of parts
and general technical support for the fleet of engines. On June 30, 2008, the Company finalized a contract for a similar
level of coverage and support for the engines on all of its aircraft that have been or were scheduled to be delivered over
the period through November 2012. Due to the fact that engines on recently delivered aircraft will not require a scheduled
engine overhaul prior to the expiry of the current contract with GE, Ryanair has decided, at this time, not to take up its
option to have engines delivered with aircraft after October 2010 covered by this contract. General Electric Engine Services
mainly uses its EASA Part 145-approved repair facility in Cardiff, Wales for this work, but also uses its EASA Part 145-
approved facility in Celma, Brazil. By contracting with experienced EASA Part 145-approved maintenance providers,
management believes it is better able to ensure the quality of its aircraft and engine maintenance. Ryanair assigns a EASA
Part 145-certified mechanic to oversee all heavy maintenance and to authorize all engine overhauls performed by third
parties. Maintenance providers are also monitored closely by the national authorities under EASA and national regulations.
Ryanair expects to be dependent on external service contractors, particularly for engine and component
maintenance, for the foreseeable future, notwithstanding the additional capabilities provided by its maintenance facilities
at Dublin, Glasgow (Prestwick), London (Stansted), Frankfurt (Hahn), Kaunas, Bremen and Bergamo. See “Item 3. Key
Information—Risk Factors—Risks Related to the Company—The Company Is Dependent on External Service Providers.”