Ryanair 2016 Annual Report Download - page 88

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abuse such dominant position. Similar competition laws apply at national level in EU member states. 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.”
Environmental Regulation
Aircraft Noise Regulations. Ryanair is subject to international, national and, in some cases, local noise regulation
standards. EU and Irish regulations have required that all aircraft operated by Ryanair comply with Stage 3 noise
requirements since April 1, 2002. All of Ryanair’s aircraft currently comply with these regulations. Certain airports in the
U.K. (including London Stansted and London Gatwick) and continental Europe have established local noise restrictions,
including limits on the number of hourly or daily operations or the time of such operations.
Company Facilities. Environmental controls are generally imposed under Irish law through property planning
legislation, specifically the Local Government (Planning and Development) Acts of 1963 to 1999, the Planning and
Development Act 2000 and regulations made there under. At Dublin Airport, Ryanair operates on land controlled by the
DAA. Planning permission for its facilities has been granted in accordance with both the zoning and planning requirements
of Dublin Airport. There is also specific Irish environmental legislation implementing applicable EU directives and
regulations, to which Ryanair adheres. From time to time, noxious or potentially toxic substances are held on a temporary
basis within Ryanair’s engineering facilities at Dublin Airport, Glasgow (Prestwick), London (Stansted), Frankfurt (Hahn),
Stockholm (Skavsta), Oslo (Rygge) and Kaunas. However, at all times Ryanair’s storage and handling of these substances
complies with the relevant regulatory requirements. At Ryanair’s Glasgow (Prestwick) and London (Stansted) maintenance
facilities, all normal waste is removed in accordance with the Environmental Protection Act of 1996 and Duty of Care
Waste Regulations. For special waste removal, Ryanair operates under the Special Waste Regulations 1998. At all other
facilities Ryanair adheres to all local and EU regulations.
Ryanair’s Policy on Noise and Emissions. Ryanair is committed to reducing emissions and noise through
investments in “next generation” aircraft and engine technologies and the implementation of certain operational and
commercial decisions to minimize the environmental impact of its operations. According to the Air Travel Carbon and
Energy Efficiency Report published by Brighter Planet, Ryanair is the industry leader in terms of environmental efficiency,
and the Company is constantly working towards improving its performance.
In December 2005, Ryanair completed the fleet replacement program it commenced in 1999. All of Ryanair’s
older Boeing 737-200A aircraft were replaced with Boeing 737-800 “next generation” aircraft, and Ryanair now operates
a single-aircraft-type fleet of Boeing 737-800 “next generation” aircraft with an average age of 6 years. The design of the
new aircraft is aimed at minimizing drag, thereby reducing the rate of fuel burn and noise levels. The engines are also