EasyJet 2012 Annual Report Download - page 85

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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.
2012
£ million
2011
£ million
At 1 October 11 13
Interest receivable converted to loan notes 1 1
Redemption of loan notes (2) (3)
At 30 September 10 11
10 Other non-current assets
2012
£ million
2011
£ million
Recoverable supplemental rent (pledged as collateral) 36 40
Deposits held by aircraft lessors 17 17
Other 4 6
57 63
11 Trade and other receivables
2012
£ million
2011
£ million
Trade receivables 124 84
Less provision for impairment (4) (3)
120 81
Other receivables 33 27
Recoverable supplemental rent (pledged as collateral) 6 11
Prepayments and accrued income 82 46
241 165
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.
Allowance for credit losses
Movements in the provision for impairment of trade receivables are shown below:
2012
£ million
2011
£ million
At 1 October 3 3
Increase in provision (included in ‘other costs’) 1 –
At 30 September 4 3
Trade receivables are monitored and allowances are created when there is evidence that amounts due, according to the terms of the
receivable, may not be collected.
Accounts & other information
easyJet plc
Annual report and accounts 2012 83