EasyJet 2010 Annual Report Download - page 75

Overview Business review Governance Accounts Other information
easyJet plc
Annual report and accounts 2010
73
During the year ended 30 September 2010, six aircraft were sold and leased back under operating leases. Two of these aircraft were
acquired during the year ended 30 September 2009. The amounts shown above under the caption “aircraft sold and leased back”
relate to these two aircraft and deposits paid on the other four aircraft before 1 October 2009.
During the year ended 30 September 2009, five A319 aircraft were transferred back to property, plant and equipment from assets
held for sale.
The net book value of aircraft includes £153.2 million (2009: £148.5 million) relating to advance and option payments for future deliveries
of aircraft. This amount is not depreciated.
Aircraft with a net book value of £1,107.6 million (2009: £984.5 million) are mortgaged to lenders as loan security.
Aircraft with a net book value of £105.4 million (2009: £71.1 million) are held under finance leases.
easyJet is contractually committed to the acquisition of 47 (2009: 74) Airbus A320 family aircraft with a total list price of US$2.2 billion
(2009: US$3.4 billion) before escalations and discounts, for delivery in the period to May 2013.
9 Loan notes
In 2001, easyJet in consortium with six other UK airlines formed The Airline Group Limited in order to acquire a non-controlling interest
in NATS, the company that owns the UK air traffic control system. easyJet’s investment is principally in the form of unsecured loan notes
bearing interest at a fixed rate of 8%. Interest receivable is settled by the issue of additional loan notes. Redemption is governed by a
priority agreement among the consortium members.
2010
£ million
2009
£ million
At 1 October 12.6 12.0
Interest receivable converted to loan notes 1.1 0.9
Redemption of loan notes (0.6) (0.3)
At 30 September 13.1 12.6
10 Other non-current assets
2010
£ million
2009
£ million
Recoverable supplemental rent on leased aircraft (pledged as collateral) 48.6 57.3
Deposits held by aircraft lessors 1.1 2.3
Other 3.8 3.1
53.5 62.7
Supplemental rent is pledged to lessors to provide collateral should an aircraft be returned in a condition that does not meet the
requirements of the lease and is refunded when qualifying heavy maintenance is performed, or is offset against the costs incurred at the
end of the lease.
11 Assets held for sale
Following the acquisition of GB Airways in the year ended 30 September 2008, seven A321 aircraft were classified as assets held for sale.
During the year ended 30 September 2009 three of these aircraft were sold realising a net profit of £11.0 million. At 30 September 2009,
easyJet continued to market the remaining four A321 aircraft and although the period over which the assets were classified as held for sale
exceeded one year, the Directors considered that this classification remained appropriate.
easyJet has entered into an arrangement to dispose of the remaining four aircraft. Subsequent to the year end, in November 2010,
the legal title to these four aircraft was transferred. The total cash consideration to be received is £75.2 million. easyJet has incurred certain
costs in connection with the disposal and the aggregate net loss on the disposal of £7.0 million has been charged to the income statement
in the year ended 30 September 2010.