Ryanair 2016 Annual Report Download - page 89

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quieter and more fuel-efficient. Furthermore, by moving to an all Boeing 737-800 “next generation” fleet, Ryanair reduced
the unit emissions per passenger due to the inherent capacity increase in the Boeing 737-800 aircraft. The Boeing 737-800
“next generation” aircraft have a significantly superior fuel-burn to passenger-kilometer ratio than Ryanair’s former fleet
of Boeing 737-200A aircraft. In September 2014, Ryanair entered into an agreement with Boeing to purchase up to 200
Boeing 737-MAX-200 aircraft (including 100 firm orders and 100 aircraft subject to option). The Boeing 737-MAX-200
aircraft will deliver between fiscal 2020 and fiscal 2024. They have 197 seats and are fitted with CFM-LEAP-1B engines
which, combined with the Advanced Technology winglet and other aerodynamic improvements, will reduce fuel
consumption by up to approximately 16% on a per seat basis compared to the Boeing 737-800s in Ryanair’s configuration
and reduce operational noise emissions by approximately 40%. See “—Aircraft” above for details on Ryanair’s fleet plan.
Ryanair has also installed winglets on all of its existing aircraft and all future aircraft will also be fitted with
winglets. Winglets reduce both the rate of fuel burn and carbon dioxide emissions by approximately 4% and also reduce
noise emissions.
In addition, Ryanair has distinctive operational characteristics that management believes are helpful to the general
environment. In particular, Ryanair:
 operates with a high-seat density of 189 seats (which will increase to 197 when the Boeing 737-MAX-200
starts being delivered in fiscal 2020) and an all-economy configuration, as opposed to the 162 seats and two-
class configuration of the Boeing 737-800 aircraft used by traditional network airlines, reducing fuel burn
and emissions per seat-kilometer flown;
 has reduced per-passenger emissions through higher load factors (93% in fiscal 2016);
 better utilizes existing infrastructure by operating out of underutilized secondary and regional airports
throughout Europe, which limits the use of holding patterns and taxiing times, thus reducing fuel burn and
emissions and reducing the need for new airport infrastructure;
 provides direct services as opposed to connecting flights, in order to limit the need for passengers to transfer
at main hubs and thus reduces the number of take-offs and landings per journey from four to two, reducing
fuel burn and emissions per journey; and
 has no late-night departures of aircraft, reducing the impact of noise emissions.
Emissions Trading. On November 19, 2008, the European Council of Ministers adopted legislation to add aviation
to the EU Emissions Trading Scheme as of 2012. This scheme, which has thus far applied mainly to energy producers, is
a cap-and-trade system for CO2 emissions to encourage industries to improve their CO2 efficiency. Under the legislation,
airlines were granted initial CO2 allowances based on historical “revenue ton kilometers” and a CO2 efficiency benchmark.
Any shortage of allowances has to be purchased in the open market and/or at government auctions. Management believes
that this legislation is likely to have a negative impact on the European airline industry. Ryanair takes its environmental
responsibilities seriously and intends to continue to improve its environmental efficiency and to minimize emissions. Under
Regulation 7 of The U.K. Companies Act 2006 (Strategic Report and Directors’ Report) Regulations 2013, Ryanair is
obliged to state its annual quantity of emissions in tons of carbon dioxide equivalent. Ryanair’s EU Emissions Trading
Scheme monitoring, reporting and allowance surrender obligations are mandated on a calendar year basis. During calendar
year 2015, Ryanair emitted 8,638,838 tCO2 (Calendar 2014: 7,756,156), which equates to 0.085 tCO2 (Calendar 2014:
0.090) per passenger.
Aviation Taxes. Ryanair is fundamentally opposed to the introduction of any aviation taxes, including any
environmental taxes, fuel taxes or emissions levies. Ryanair has, and continues to offer, the lowest fares in Europe, to make
passenger air travel affordable and accessible to European consumers. Ryanair believes that the imposition of additional
taxes on airlines will not only increase airfares, but will discourage new entrants into the market, resulting in less choice
for consumers. Ryanair believes this would ultimately have adverse effects on the European economy in general. There is
in particular no justification for any environmental taxes on aviation following the introduction of the Emissions Trading
Scheme for airlines.