Ryanair 2016 Annual Report Download - page 91

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DESCRIPTION OF PROPERTY
For certain information about each of the Company’s key facilities, see “—Facilities” above. Management
believes that the Company’s facilities are suitable for its needs and are well maintained.
Item 4A. Unresolved Staff Comments
There are no unresolved staff comments.
Item 5. Operating and Financial Review and Prospects
The following discussion should be read in conjunction with the audited consolidated financial statements of the
Company and the notes thereto included in Item 18. Those consolidated financial statements have been prepared in
accordance with IFRS.
HISTORY
Ryanair’s current business strategy dates to the early 1990s, when a new management team, including the current
chief executive, commenced the restructuring of Ryanair’s operations to become a low-fares airline based on the low-cost
operating model pioneered by Southwest Airlines Co. in the United States. During the period between 1992 and 1994,
Ryanair expanded its route network to include scheduled passenger services between Dublin and Birmingham, Manchester
and Glasgow (Prestwick). In 1994, Ryanair began standardizing its fleet by purchasing used Boeing 737-200A aircraft to
replace substantially all of its leased aircraft. Beginning in 1996, Ryanair continued to expand its service from Dublin to
new provincial destinations in the U.K. In August 1996, Irish Air, L.P., an investment vehicle led by David Bonderman
and certain of his associates at the Texas Pacific Group, acquired a minority interest in the Company. Ryanair Holdings
completed its initial public offering in June 1997.
From 1997 through June 30, 2016, Ryanair launched service on more than 2,000 routes throughout Europe and
also increased the frequency of service on a number of its principal routes. During that period, Ryanair established 84
airports as bases of operations, including Dublin. See “Item 4. Information on the Company—Route System, Scheduling
and Fares” for a list of these bases. Ryanair has increased the number of booked passengers from approximately 4.9 million
in the 1999 fiscal year to approximately 106.4 million in the 2016 fiscal year. As of June 30, 2016, Ryanair had a principal
fleet of over 350 Boeing 737-800 aircraft and now serves approximately 200 airports.
Ryanair expects to have approximately 546 aircraft in its operating fleet by March 31, 2024. This is subject to
lease handbacks and disposals over the period to March 31, 2024 meeting current expectations. See “Liquidity and
Capital Resources” and “Item 4. Information on the CompanyAircraft” for additional details.
BUSINESS OVERVIEW
Since Ryanair pioneered its low cost operating model in Europe in the early 1990s, its passenger volumes and
scheduled passenger revenues have increased significantly because the Company has substantially increased capacity and
demand has been sufficient to match the increased capacity. Ryanair’s annual booked passenger volume has grown from
approximately 0.9 million passengers in the calendar year 1992 to approximately 106.4 million passengers in the 2016
fiscal year.
Ryanair’s revenue passenger miles (“RPMs”) increased approximately 15% from 70,331 million in the 2015
fiscal year to 81,146 million in the 2016 fiscal year due partly to an increase of approximately 10% in scheduled available
seat miles (“ASMs”) from 79,690 million in the 2015 fiscal year to 87,451 million in the 2016 fiscal year. Scheduled
passenger revenues increased approximately 17% from €4,260.3 million in the 2015 fiscal year to €4,967.2 million in the
2016 fiscal year. Average booked passenger fare decreased from €47.05 in the 2015 fiscal year to €46.67 in the 2016 fiscal
year.