EasyJet 2008 Annual Report Download - page 35

easyJet plc
Annual report and accounts 2008
General information
continued
Employee share schemes – rights of control
The trustee of the easyJet Share Incentive Plan (the Plan) will, on receipt
of any offer, compromise, arrangement or scheme which affects ordinary
shares held in the Plan, invite participants to direct the trustee on the
exercise of any voting rights attaching to the ordinary shares held by the
trustee on their behalf and/or direct how the trustee shall act in relation
to those ordinary shares. The trustee shall take no action in respect of
ordinary shares for which it has received no directions or ordinary
shares which are unallocated. Generally, on a poll the trustee shall vote
in accordance with directions given by participants. In the absence of
directions or on a show of hands the trustee shall not vote.
The trustee of the easyJet Employee Share Trust (the Trust), which is
used in connection with the easyJet Long Term Incentive Plan, has the
power to vote or not vote at its discretion in respect of any shares in
the Company held in the Trust.
Overseas branches
One of the Company’s wholly owned subsidiaries, easyJet Airline
Company Limited, operates two Spanish branches (one performing
self-handling and the other dealing with employment matters), an
Italian branch (also dealing with employment matters) and a dormant
French branch.
Policy and practice on payment of creditors
easyJet aims to have partnership agreements with suppliers, which
stresses the importance of strong suppliers aligned to the success of
easyJet as a business. Many of the Company’s supply agreements are
unique and tailored to the needs of the business, to make sure that
suppliers are rewarded appropriately for delivering services which
meet pre-agreed performance targets and align with easyJet’s own
internal performance goals. The Company’s practice is to:
• Agree the terms of payment at the start of business with
the supplier;
• Ensure that those suppliers are made aware of the terms
of payment;
• Pay in accordance with its contractual and other legal obligations.
At 30 September 2008, the number of creditor days outstanding for
the Group was ten days (2007: nine days), and the Company, nil days
(2007: nil days).
Political and charitable contributions
During the year, the Group made charitable contributions totalling
£50,000 (2007: £50,000). The Group also performs collections on behalf
of charitable organisations and during 2008 raised £528,266 for the
benefit of the Anthony Nolan Trust. There were no contributions made
for political purposes.
Substantial interests
As at 14 November 2008, the Company had been notified of the following
disclosable interests of 3% or more in its ordinary shares:
Number
of shares %
easyGroup Holdings Limited
(holding vehicle for Sir Stelios Haji-Ioannou) 66,076,451 15.62%
Polys Holdings Limited
(holding vehicle for Polys Haji-Ioannou) 47,954,575 11.33%
Clelia Holdings Limited
(holding vehicle for Clelia Haji-Ioannou) 47,954,575 11.33%
Standard Life Investments 41,827,627 9.90%
Schroders plc 23,157,105 5.50%
Wellington Management Company 21,612,887 5.13%
FMR LLC 21,500,700 5.10%
Black Rock Inc. 18,549,906 4.40%
Deutsche Bank AG 13,316,563 3.15%
Sanderson Asset Management 13,212,669 3.14%
Legal & General Group plc 12,806,145 3.05%
On 13 November 2008, the Company was advised that Clelia Holdings
Limited had transferred its legal interest in 47,954,575 ordinary shares
in the Company to easyGroup Holdings Limited. The Company has not
yet received formal notification of this. As a result of the transaction,
easyGroup’s holding of the Company’s issued ordinary share capital
would increase from approximately 15.6% to approximately 26.9%.
Key contractual or other arrangements essential
to the business
easyJet operates a fleet constituted mainly of Airbus* aircraft with some
Boeings which are being phased out. Engines are provided by CFM and
IAE and maintenance of aircraft and engines is undertaken by SRT, Virgin*,
Aerotron*, GE, MTU and Lufthansa. The major financiers of aircraft are
GECAS, Nomura Babcock Brown, Royal Bank of Scotland, CIT Aerospace
and Pegasus Aviation. The major lessors of aircraft in easyJet’s fleet are HSH
Nordbank, PK Airfinance, Alliance & Leicester, Bank of Tokyo Mitsubishi, BNP
Paribas, West LB and Sumitomo Mitsui Banking Corporation.
easyJet’s main insurers are AIG, Kiln, Brit, Canada Life, QBE, Chubb,
Ace and Allianz.
*These contracts contain provisions giving the other party the right to terminate if there
is a change in control of easyJet.
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