Ryanair 2011 Annual Report Download - page 146

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At March 31, 2011, aircraft with a net book value of 14,718.7 million (2010: 13,863.6 million; 2009:
13,163.3 million) were mortgaged to lenders as security for loans. Under the security arrangements for the
Company’s new Boeing 737-800 “next generation” aircraft, the Company does not hold legal title to those
aircraft while these loan amounts remain outstanding.
At March 31, 2011, the cost and net book value of aircraft includes 1194.2 million (2010: 1397.8
million; 2009: 1405.3 million) in respect of advance payments on aircraft. This amount is not depreciated. The
cost and net book value also includes capitalised aircraft maintenance, aircraft simulators and the stock of
rotable spare parts. In prior years, aircraft assets have also included the fair value of certain foreign currency
firm commitments to buy aircraft, which are permitted to be included within the Company’s balance sheet as
fair-value hedges, which had been undertaken in respect of these commitments. At March 31, 2011, the amount
included in aircraft assets was nil (2010: nil; 2009: 10.7 million).
The net book value of assets held under finance leases at March 31, 2011, 2010 and 2009 was 1635.1
million, 1422.8 million and 1435.5 million respectively.
There were no Boeing 737-800 aircraft disposed of during the year (2010: 3; 2009: 16). There is no
agreement to dispose of further aircraft at future dates. The sale proceeds generated on the delivery of aircraft
sold amounted to 165.6 million in fiscal year 2010 and 1314.2 million in fiscal year 2009.
During the 2011 fiscal year, no accelerated depreciation (2010: nil; 2009: 151.6 million) arose in
relation to aircraft disposals or agreements to dispose of aircraft at future dates.
3 Intangible assets
At March 31,
2011 2010 2009
1M 1M 1M
Landing rights ................................................................
................................
46.8 46.8 46.8
Landing slots were acquired with the acquisition of Buzz Stansted Limited in April 2003. As these
landing slots have no expiry date and are expected to be used in perpetuity, they are considered to be of
indefinite life and accordingly are not amortised. The Company also considers that there has been no
impairment of the value of these rights to date. The recoverable amount of these rights has been determined on a
value-in-use basis, using discounted cash-flow projections for a twenty-year period for each route that has an
individual landing right. The calculation of value-in-use is most sensitive to the operating margin and discount
rate assumptions. Operating margins are based on the existing margins generated from these routes and adjusted
for any known trading conditions. The trading environment is subject to both regulatory and competitive
pressures that can have a material effect on the operating performance of the business. Foreseeable events,
however, are unlikely to result in a change of projections of a significant nature so as to result in the landing
rights’ carrying amounts exceeding their recoverable amounts. These projections have been discounted using a
rate that reflects management’s estimate of the long-term pre-tax return on capital employed for its scheduled
airline business, estimated to be 7.10% for 2011, 2.96% for 2010 and 3.48% for 2009.