EasyJet 2009 Annual Report Download - page 29

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Annual report and accounts 200927 easyJet plc
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Overview
Business review
Governance
Accounts
Other information
Going concern
In adopting the going concern basis for preparing the accounts, the Directors
have considered the business activities as set out on pages 16 to 19 as well
as easyJet’s principal risks and uncertainties as set out on pages 28 to 29.
Based on easyJet’s cash ow forecasts and projections, the Board is satised
that easyJet will be able to operate within the level of its facilities and available
cash for the foreseeable future. For this reason, easyJet continues to adopt
the going concern basis in preparing its accounts.
Significant contracts
easyJet operates a eet 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 lessors of aircraft to easyJet
are AWAS*, BOC Aviation*, GECAS*, Nomura Babcock & Brown*, Royal
Bank of Scotland* and Sumisho*. The major lenders to easyJet for aircraft
purchase are Alliance & Leicester*, Bank of Tokyo-Mitsubishi*, BNP Paribas*,
Calyon*, HSH Nordbank*, KfW*, Natixis*, PK AirFinance*, Royal Bank of
Scotland*, Sumitomo Mitsui Banking Corporation* and WestLB*.
Our main insurers are Global, AIG, Kiln, Canada Life, QBE, Chubb, Ace
and Allianz.
One of our biggest costs is fuel and our main suppliers are Shell, Air BP, Exxon
and Q8. Our IT systems include agreements with AIMS, who provide crew,
aircraft and ight management control and operation software; SAVVIS who
provide data centre hosting facilities; Lufthansa who provide ight planning
systems; SOPRA who develop our reservations system; and Agresso who
provide our accounting system.
On 30 September 2009 the Company had 20 bases and they were
operated by:
BAA
AdP
Saint Louis – EuroAirport Basel-Mulhouse-Freiburg
Manchester Airports Group
South West Airports
Abertis
Peel Holdings
Aeroports de Lyon
Flughafen Berlin-Schoenefeld
Aeroporti Di Milano
Newcastle Airport
Geneva International Airport
AENA
At these airports our ground handling was carried out by:
Menzies Aviation
Servisair
Group Europe Handling
Aviapartner
Swissport
SEA Handling
Globeground Berlin
Our main ancillary partners are Gate Gourmet, who provide our in-ight
merchandise, Europcar, who provide car rental, Hotelopia and Laterooms
who broker hotels and Alvia who, through the Mondial brand, provide insurance.
Our credit card acquirers are Elavon, Lloyds TSB, Euroconnect, Barclays
Merchant Services and American Express. Our payment service providers
are CyberSource and Bibit.
The Company is regulated by the CAA and easyJet Switzerland is regulated
by FOCA. We have important relationships with NATS and Eurocontrol in
relation to air trafc services.
The main unions we deal with in the UK are BALPA, UNITE and ALAE;
in France they are SNPL and UNAC/CFTC; in Spain they are SEPLA and
CCOO; in Italy ANPAC CISL; and in Switzerland BALPA and ESPA.
We use training services from CTC and ight simulation services from CAE.
We have a key relationship with easyGroup IP Licensing who own
the easyJet brand.
*These contracts contain provisions giving the other party the right to terminate if there is a change
in control in easyJet.
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 our 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. Our practice is to:
agree the terms of payment at the start of business with the supplier
q
ensure that those suppliers are made aware of the terms of payments q
pay in accordance with contractual and other legal obligations q
At 30 September 2009, the number of creditor days outstanding for the
Group was 15 days (2008: ten days), and for the Company was nil days
(2008: nil days).