RYANAIR’S recently-filed 20-F document with the Securities and Exchange Commission sheds some light on the risks of downgrading its services this winter at Stansted and Dublin airports.
Michael O’Leary has reduced Ryanair services at Dublin and Stansted due to what he feels are exorbitant passenger charges.
The documents show just how important both airports are to Ryanair’s operations and highlight the risks involved in this game of chicken with the airports.
Dublin-Stansted is Ryanair’s busiest route in passenger terms, followed by Dublin-Gatwick and Stansted-Rome. Dublin and Stansted account for nine of its 10 busiest routes, with only the Milan- Rome service breaking them up.
Ryanair said its decision to “freeze” its development in the UK and reduce flights at Stansted “presents numerous risks”.
Ryanair carried 18.8 million passengers in or out of London last year – 32 per cent of its total passengers.
“A weak UK economy, along with the company’s decision to freeze its UK bases and reduce its London Stansted flights, may affect the overall growth of the company,” the airline states.
The 20-F states how Ryanair has spent €407 million acquiring its 29.8 per cent stake in Aer Lingus. This had been written down to just €79.7 million by the end of June 2009. O’Leary took a 10 per cent pay cut last year to €535,000 as part of a €1.07 million remuneration. His salary has been frozen for the current year while his bonus has been roughly halved to €241,000.
O’Leary’s pension arrangements changed last October, the 20-F states, with the Ryanair boss switching from a defined-benefit to a defined-contribution scheme.
Ryanair paid €277,000 in fees to its non-executive directors.
The airline paid €5.4 million to its eight directors and eight “executive officers”, who include deputy chief executives Howard Millar and Michael Cawley. This would indicate that the executive officers earned €4.05 million between them or an average €506,000. Who says Ryanair isn’t a generous employer?
