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.However, the purchase of aircraft from a single manufacturer enables Ryanairto limit the costs associated with personnel training, maintenance, and the purchase and storage ofspare parts while also affording the Company greater flexibility in the scheduling of crews andequipment.Management also believes that the terms of Ryanair s contracts with Boeing are veryfavorable to Ryanair.However, as Ryanair s existing delivery program expires in November 2012, theCompany may have to consider an additional aircraft order with Boeing or other aircraft manufacturersfor future deliveries for growth or fleet replacement purposes.See  Aircraft below for additionalinformation on Ryanair s fleet.Personnel Costs.Ryanair endeavors to control its labor costs by seeking to continually improve theproductivity of its already highly productive work force.Compensation for employees emphasizesproductivity-based pay incentives.These incentives include commissions for onboard sales of productsfor flight attendants and payments based on the number of hours or sectors flown by pilots and flightattendants within limits set by industry standards or regulations fixing maximum working hours.Customer Service Costs.Ryanair has entered into agreements on competitive terms with externalcontractors at certain airports for ticketing, passenger and aircraft handling, and other services thatmanagement believes can be more cost-efficiently provided by third parties.Management attempts toobtain competitive rates for such services by negotiating fixed-price, multi-year contracts.Thedevelopment of its own Internet booking facility has allowed Ryanair to eliminate travel agentcommissions and third-party reservation systems costs.Ryanair generates over 99% of its scheduledpassenger revenues through direct sales via its website.Airport Access and Handling Costs.Ryanair attempts to control airport access and service charges byfocusing on airports that offer competitive prices.Management believes that Ryanair s record ofdelivering a consistently high volume of passenger traffic growth at many airports has allowed it tonegotiate favorable contracts with such airports for access to their facilities.Ryanair further endeavorsto reduce its airport charges by opting, when practicable, for less expensive gate locations as well asoutdoor boarding stairs, rather than jetways, which are more expensive and operationally less efficientto use.In addition, since October 2009, Ryanair has required all passengers to check-in on the Internet.57This requirement was instituted to reduce waiting times at airports and speed a passenger s journeyfrom arrival at the airport to boarding, as well as significantly reduce airport handling costs.Ryanairhas also introduced a checked-bag fee, which is payable on the Internet at the time of booking and isaimed at reducing the number of bags carried by passengers in order to further reduce handling costs.See  Risk Factors Risks Related to the Company The Company Faces Risks Related to its InternetReservations Operations and its Announced Elimination of Airport Check-in Facilities.Taking Advantage of the Internet.In 2000, Ryanair converted its host reservation system to a newsystem, which it operates under a hosting agreement with Navitaire that was extended in 2011 and willterminate in 2020.As part of the implementation of the new reservation system, Navitaire developed an Internetbooking facility.The Ryanair system allows Internet users to access its host reservation system and to make andpay for confirmed reservations in real time through the Ryanair.com website.After the launch of the Internetreservation system, Ryanair heavily promoted its website through newspaper, radio and television advertising.As a result, Internet bookings grew rapidly, and have accounted for over 99% of all reservations over the pastseveral years.In May 2012, Ryanair further upgraded the reservation system, which offers more flexibility forfuture system enhancements and to accommodate the future growth of Ryanair.Commitment to Safety and Quality Maintenance [ Pobierz całość w formacie PDF ]