Ryanair 2016 Annual Report Download - page 87

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and the inter-operability of the European air traffic management network. These regulations were amended by the so-
called “Single European Sky II” regulation (EU Regulation 1070/09), which focused on air traffic control (“ATC”)
performance and extended the authority of EASA to include Airports and Air Traffic Management. The objective of the
policy is to enhance safety standards and the overall efficiency of air traffic in Europe, as well as to reduce the cost of air
traffic control services.
On September 6, 2005, the European Commission announced new guidelines on the financing of airports and
start-up aid to airlines by regional airports based on its February 2004 finding in the Charleroi case, a decision that the EU
Court of First Instance (“CFI”) has since annulled in December 2008. The guidelines only applied to publicly owned
regional airports, and placed restrictions on the incentives that these airports can offer airlines to deliver traffic. Ryanair
argued that the CFI’s annulment of the Charleroi decision severely undermined these guidelines. In April 2014, the
European Commission published final revised guidelines that better reflect the commercial reality of the liberalized air
transport market, but still place restrictions on the incentives public airports can offer to airlines delivering traffic, when
compared with the commercial freedom available to private airports.
The European Union also adopted legislation on airport charges (EU Directive 2009/12), which was originally
intended to address abusive pricing at monopoly airports. However, the legislation includes all European airports with over
five million passengers per year. Management believes that this will likely increase the administrative burdens on smaller
airports and may lead to higher airport charges, while the scope that exists within this Directive to address abuses of their
dominant positions by Europe’s larger airports is very limited. See “Item 8. Financial InformationOther Financial
InformationLegal ProceedingsEU State Aid-Related Proceedings.”
The European Union also passed legislation calling for increased transparency in airline fares, which requires the
inclusion of all mandatory taxes, fees, and charges in advertised prices. Ryanair currently includes this information in its
advertised fares in all markets where it operates. However, certain regulatory authorities 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 incorporated 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, eleven of the
twelve 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