EasyJet 2010 Annual Report Download - page 26

Financial review
continued
Significant contracts
easyJet operates a eet constituted mainly of Airbus* aircraft with some
Boeings which are being phased out. Engines are provided by CFM
International and IAE and the maintenance of the aircraft and engines is
undertaken by SRT, Virgin Atlantic Engineering*, Aerotron*, GE, MTU,
BF Goodrich and Lufthansa Technik. The major lessors of aircraft to
easyJet are AWAS*, BOC Aviation*, GECAS*, Nomura Babcock &
Brown*, Royal Bank of Scotland*, Sumisho*, and Santander*. 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, La Reunion, AIG, Canada Life, QBE,
Chubb and Houston Casualty Company Europe.
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
Systems who provide ight planning systems; SOPRA who develop our
reservations system; AD OPT Technologies who provide our pairings
and roster optimiser; and Agresso who provide our accounting system.
On 30 September 2010 the Company had 19 bases and they were
operated by:
BAA
Global Infrastructure Partners
AdP
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
Aeroporti di Roma
At these airports our ground handling was carried out by:
Menzies Aviation
Servisair
Group Europe Handling
Aviapartner
Swissport
SEA Handling
Globeground Berlin
Swissport Menzies
Gate Aviation
Aviation Service
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 provider
is CyberSource.
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 trafc services.
The main unions we deal with in the UK are BALPA, UNITE and
Prospect; in France they are SNPL and UNAC/CFTC; in Spain they are
SEPLA and CCOO; in Italy ANPAC CISL; in Germany Ver.di; and in
Switzerland BALPA and ESPA.
We use contract pilots from Airline Recruitment and Parc Aviation 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 of 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
– Ensure that those suppliers are made aware of the terms of the
payments
– Pay in accordance with contractual and other legal obligations
At 30 September 2010, the number of creditors days outstanding for the
Group was 6 days (2009: 15 days), and for the Company was nil days
(2009: nil days).
24 easyJet plc
Annual report and accounts 2010