Ryanair 2016 Annual Report Download - page 86

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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;
aviation security 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 by 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 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 the AOC.
In July 1999, the IAA awarded Ryanair a JAR Ops 1 AOC. In 2008, the IAA awarded Ryanair an EU Ops AOC.
In 2014, the IAA awarded Ryanair an Air Ops AOC. This AOC remains in force subject to Ryanair demonstrating
continuing compliance with applicable EASA regulations. The requirements of Air Ops have been incorporated into
European law as prescribed in Regulation EC 965/2012 and were applied in full on October 28, 2014. All current regulatory
requirements are addressed in the Ryanair Operations Manual Part A (as amended). The current Manual, Issue 1 Revision
1, was approved by the IAA on June 27, 2016.
Department of Transport, Tourism and Sport. The Department of Transport, Tourism and Sport (“DTTAS”) is
responsible for implementation of certain EU and Irish legislation and international standards relating to air transport.
In June 2005, the Irish Minister for Transport enacted legislation strengthening rights for air passengers following
the enactment of EU legislation requiring compensation of airline passengers who have been denied boarding on a flight
for which they hold a valid ticket (Regulation (EC) No. 261/2004), which came into force on February 17, 2005. See “Item
3. Risk Factors—Risks Related to the Airline Industry—EU Regulation on Passenger Compensation Could Significantly
Increase Related Costs.”
The European Aviation Safety Agency. EASA is an agency of the EU that has been given specific regulatory and
executive tasks in the field of aviation safety. EASA was established through Regulation (EC) No. 1592/2002 of the
European Parliament and the Council of July 15, 2002, repealed by Basic Regulation (EC) 216-2008. The purpose of
EASA is to draw-up common standards to ensure the highest levels of safety, oversee their uniform application across
Europe and promote them at the global level. The EASA formally started its work on September 28, 2003, taking over the
responsibility for regulating airworthiness, maintenance and air crew issues within the EU member states.
Eurocontrol. The European Organization for the Safety of Air Navigation (“Eurocontrol”) is an autonomous
European organization established under the Eurocontrol Convention of December 13, 1960. Eurocontrol is responsible
for, inter alia, the safety of air navigation and the collection of route charges for en route air navigation facilities and
services throughout Europe. Ireland is a party to several international agreements concerning Eurocontrol. These
agreements have been implemented in Irish law, which provides for the payment of charges to Eurocontrol in respect of
air navigation services for aircraft in airspace under the control of Eurocontrol. The relevant legislation imposes liability
for the payment of any charges upon the operators of the aircraft in respect of which services are provided and upon the
owners of such aircraft or the managers of airports used by such aircraft. Ryanair, as an aircraft operator, is primarily
responsible for the payment to Eurocontrol of charges incurred in relation to its aircraft.
The legislation authorizes the detention of aircraft in the case of default in the payment of any charge for air
navigation services by the aircraft operator or the aircraft owner, as the case may be. This power of detention extends to
any equipment, stores or documents, which may be onboard the aircraft when it is detained, and may result in the possible
sale of the aircraft.
European Commission. The European Commission is in the process of introducing an updated legislative package
to its “single European sky policy,” called “SES2+”, which would lead to changes to air traffic management and control
within the EU. The “single European sky policy” currently consists of the Framework Regulation (Reg. (EC) No.
549/2004) plus three technical regulations on the provision of air navigation services, organization and use of the airspace