Aer Lingus 2010 Annual Report Download - page 89

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Financial Statements Aer Lingus Group Plc – Annual Report 2010 87
30 Financial commitments (continued)
(b) Lease commitments
At 31 December 2010 the Group had commitments, under non-cancellable operating leases, which fall due as follows:
Property Aircraft
Plant and
machinery
€’000 €’000 €’000
No later than one year 8,130 46,778 69
Later than one year but no later than fi ve years 28,171 95,109 -
Later than fi ve years 49,916 7,543 -
86,217 149,430 69
At 31 December 2009 the Group had commitments, under non-cancellable operating leases, which fall due as follows:
Property Aircraft
Plant and
machinery
€’000 €’000 €’000
No later than one year 8,484 45,690 74
Later than one year but no later than fi ve years 26,292 93,428 -
Later than fi ve years 64,142 10,598 -
98,918 149,716 74
Surrender of Aer Lingus Head Offi ce Building site
In June 2010, the Group signed a Heads of Agreement with Dublin Airport Authority (“DAA”) under which it has agreed to surrender the
leasehold interest in its Head Offi ce Building site (“HOB site”) to DAA.
The HOB site comprises a 9.9 acre area on which the Group’s Head Offi ce (“HOB”), Services Annex and Iolar House are currently located.
The HOB is in need of refurbishment and will be too large for the Group’s requirements following the “Greenfi eld” cost reduction programme.
Employees, administrative and support services currently based in the HOB will re-locate to Hangar 6 and other parts of Aer Lingus’ property
portfolio during the course of 2011. This transaction represents a cost effective consolidation of the Group’s real estate portfolio in a manner
that will also improve operational effi ciency.
As part of the arrangements for the surrender of the HOB site, DAA will pay Aer Lingus €10.55 million over 10 years and will provide
Aer Lingus with certain services and facilities to an agreed value of €11.60 million over the same period.
The transaction is conditional on the conclusion of satisfactory contractual terms and any required approvals and is expected to complete
in January 2012.