Aer Lingus 2008 Annual Report Download

Download and view the complete annual report

Please find the complete 2008 Aer Lingus annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 92

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80
  • 81
  • 82
  • 83
  • 84
  • 85
  • 86
  • 87
  • 88
  • 89
  • 90
  • 91
  • 92

Annual Report 2008

Table of contents

  • Page 1
    Annual Report 2008

  • Page 2
    Route Network USA to/from Dublin, Cork and Shannon Dublin Shannon Cork Boston Chicago San Francisco New York Washington Orlando Europe to/from Dublin Helsinki Europe to/from Belfast, Cork and Shannon to/from Gatwick Glasgow Edinburgh Hamburg Manchester Berlin Birmingham Amsterdam London ...

  • Page 3
    AER LINGUS GROUP PLC - ANNUAL REPORT 2008 Financial Highlights For the year ended 31 December 2008 2008 Results Revenue EBITDAR1 Operating (loss)/profit before employee profit share and net exceptional items Employee profit share Net finance income Pre-tax profit before net exceptional items ...

  • Page 4
    ... in 2007. Return on capital in 2008 was 9.5% as compared to n 19.6% in 2007. Our balance sheet is strong, with net cash of â,¬653.9 million at year-end. While 2008 was a tough year, Aer Lingus remains a strong company. LONDON FARO BRUSSELS BERLIN PARIS MADRID AER LINGUS GROUP PLC - ANNUAL REPORT...

  • Page 5
    SAN FRANCISCO WASHINGTON BOSTON ORLANDO NEW YORK CHICAGO Aer Lingus in partnership with United Airlines launched a codeshare agreement with a new daily service between Washington and Madrid from summer 2010. AER LINGUS GROUP PLC - ANNUAL REPORT 2008 3 n Aircraft utilisation up 3.0% on short haul...

  • Page 6
    ... New York as connecting points AER LINGUS GROUP PLC - ANNUAL REPORT 2008 prestigious "Airline of the Year" award, while our Irish Sales team picked up the "Airline of the Year" award at the Irish Travel Trade News Awards. In addition, we have recently been voted 'Best Short Haul Airline' and 'Best...

  • Page 7
    AER LINGUS GROUP PLC - ANNUAL REPORT 2008 revenue streams beyond the Irish market is a key to the long-term success of this business. and he left the Board. Chris was an extremely supportive Director. Aer Lingus and its stakeholders are deeply indebted to him. LONG HAUL Lingus operating platform...

  • Page 8
    ... Review AER LINGUS GROUP PLC - ANNUAL REPORT 2008 6 ORLANDO NEW YORK CHICAGO SAN FRANCISCO WASHINGTON BOSTON "Aer Lingus, very nice staff. On time. Classy. They are very clean, everything you'd want from an airline. I ï¬,y with them every time! Bad points, nothing." ONLINE AER LINGUS TRIP REVIEW...

  • Page 9
    ... Dublin based ï¬,eet by one A320 due to the weakening of demand ex-Ireland. Ancillary revenue Ancillary revenue continued its significant growth pattern in 2008. This category mainly comprises sales on board, booking fees, baggage and excess baggage charges, seat selection fees and car hire, hotel...

  • Page 10
    ... increased charges by the airports served. During the year, the Group concluded new contracts with a number of world-class suppliers on the provision of maintenance services. This resulted in the reduction in maintenance cost provisions to reï¬,ect the new contracts Aer Lingus award-winning cabin...

  • Page 11
    ... four years through 2012. In addition, this division also provides essential day-to-day treasury and financial services to the airline business. Taxation of â,¬19.5m). The taxation credit was â,¬11.9m in 2008 (2007: charge MUNICH NICE VIENNA ZURICH FARO AER LINGUS GROUP PLC - ANNUAL REPORT 2008...

  • Page 12
    10 AER LINGUS GROUP PLC - ANNUAL REPORT 2008 "Prague - Dublin and back, enjoyable ï¬,ight, excellent cabin crew and liked being able to buy a newspaper on board. Excellent prices and good service, more than happy to ï¬,y with them again." ONLINE AER LINGUS TRIP REVIEW: 19 November 2008

  • Page 13
    ...cost base with the Group's current and expected revenue stream. At 28 February 2009, our estimated fuel requirements for the remainder of 2009 were hedged as follows: 10 months to 31 December 2009 % hedged 72% Full year 2010 SAN FRANC WASHINGTO BOSTON ORLANDO NEW YORK CHICAGO 22% Average price...

  • Page 14
    ... cost efficiencies across the network and to prevent pollution. To this end, Aer Lingus NEW YORK CHICAGO LONDON FARO BRUSSELS BERLIN PARIS MADRID "Good value ï¬,ights, good service, what more could I ask for." ONLINE AER LINGUS TRIP REVIEW: 21 May 2008 AER LINGUS GROUP PLC - ANNUAL REPORT 2008

  • Page 15
    AER LINGUS GROUP PLC - ANNUAL REPORT 2008 Aer Lingus provides supports to the Special Olympics - Team Ireland's athletes and volunteers the European Parliament voted in favour of including aviation emissions in the European Union's (EU) Emission Trading Scheme (ETS) as of 2012. The ETS is one of ...

  • Page 16
    ... Emissions 19.0 18.1 17.2 AER LINGUS GROUP PLC - ANNUAL REPORT 2008 15.4 A330-300 A330-300 Enhanced A350-800 A350-900 14 Fig 1 Reducing fuel consumption - new aircraft fuel burn - kilos of fuel, per seat, per ï¬,ight hour Fleet: The Group is reducing the climate change impact of its ï¬,eet...

  • Page 17
    ... passenger needs. Aer Lingus complies fully with the Waste Electrical and Electronic Equipment Directive (WEEE) Pictured: Former Aer Lingus CEO, Dermot Mannion and members of the Aer Lingus Sales Team celebrate the airline's award "Best Airline to Europe" by the Irish Travel Trade News Awards...

  • Page 18
    ... attendants great. Our push chair for our 2 year old daughter was brought to us at the door on arrival in Logan which was a nice touch." ONLINE AER LINGUS TRIP REVIEW: 5 July 2008 Aer Lingus self-service baggage drop kiosks at Dublin Airport. The airline is the first to introduce such a facility...

  • Page 19
    ... safety regulations. Information and advice for customers on air travel and health is available on the Group's website, www.aerlingus.com, in the in-ï¬,ight magazine, Cara, and through on-board announcements and videos. AER LINGUS GROUP PLC - ANNUAL REPORT 2008 Health, safety and security Safety...

  • Page 20
    AER LINGUS GROUP PLC - ANNUAL REPORT 2008 LONDON GATWICK Board Safety Committee CEO Safety Manager Air Safety Health & Safety Quality Management Fig 3 Board safety committee: Three members of the Group's Board are designated as a sub-committee responsible for air safety. In this role they meet ...

  • Page 21
    ...: Aer Lingus recognises that changes in personal circumstances affect employees' lives and work. In order to recognise the diverse needs of employees, and to ensure fairness and consistency across the Group, Aer Lingus has a ï¬,exible working policy. The objective of this policy is to help staff...

  • Page 22
    ... class return tickets for auction prizes to help raise much-needed funds. Aer Lingus has also partnered with Belfast City Marathon AER LINGUS GROUP PLC - ANNUAL REPORT 2008 Pension schemes: Aer Lingus operates a number of pension schemes. See Note 24 to the financial statements for more details...

  • Page 23
    ...departure times and in-ï¬,ight health and comfort advice. Customers can also sign-up to receive regular e-mails During 2008 Aer Lingus introduced a new Flexifare which allows customers to change the date and time of their ï¬,ight for free in addition to complimentary seat selection and checked bags...

  • Page 24
    ... Chief Financial Officer and a member of the Board in August 2008. After initially working with KPMG Dublin, he joined Ryanair Holdings plc in 1998 where he held a number of senior positions including Head of Investor Relations, Commercial Director (Ryanair.com), and Director of Scheduled Revenue...

  • Page 25
    ... PLC - ANNUAL REPORT 2008 Danuta Gray (2)(6) Danuta Gray (50), was appointed to the Board on 25 August 2006. Ms Gray is Chief Executive of O2 Ireland, a position she has held since 2001. Ms Gray is a graduate of the University of Leeds. She is a member of the O2 Group Board. She is also a Director...

  • Page 26
    Executive Management Team AER LINGUS GROUP PLC - ANNUAL REPORT 2008 Sean Coyle Chief Financial Officer and Head of Short Haul Operations See Board of Directors on page 22. Niall Walsh Chief Operating Officer Niall Walsh, a chartered accountant, was appointed Group Procurement, IT and Property ...

  • Page 27
    ...- ANNUAL REPORT 2008 "The seats were comfortable, with good leg room. The ï¬,ight staff were relaxed and helpful. Being a nervous ï¬,yer in the past, I can honestly say I was totally chilled out. I will most certainly make this my first choice in choosing an airline." ONLINE AER LINGUS TRIP REVIEW...

  • Page 28
    ... as disclosed below, the Directors consider that the Company has complied with all relevant provisions of the 2006 AER LINGUS GROUP PLC - ANNUAL REPORT 2008 in Board composition since the year end, as at 27 April 2009 the Company is in full compliance with this Combined Code requirement. It is the...

  • Page 29
    ...potential for a second three year term), subject to satisfactory performance and re-election at any annual general meeting where this is required. None of the non-executive Directors is a party to any service contract AER LINGUS GROUP PLC - ANNUAL REPORT 2008 with the Company that provides for bene...

  • Page 30
    ... review by the Board. Induction and Development New Directors are provided with extensive briefing materials on the Company and its operations. An induction process is clearly established and has been set out in writing and approved by AER LINGUS GROUP PLC - ANNUAL REPORT 2008 Remuneration Details...

  • Page 31
    ... package of 29 Reviewed reports of Risk Committee on Group Corporate Risk Assessment Process. each executive Director and relevant senior management members, within the terms of the agreed policy. Appointments Committee In 2008, the Appointments Committee members were Mr Sean FitzPatrick...

  • Page 32
    ... when the Company was informed by the Minister for Transport of Ireland that Mr Chris Wall's appointment as In addition, the Board has taken the following steps to ensure that its members (particularly non-executive Directors) develop an understanding of the views of major shareholders: The Chairman...

  • Page 33
    ...The actions being taken to manage these risks at the desired level; and The procedures in place to monitor these risks. - Long term business plan; Detailed annual budget process, with budget reviewed and approved by Board; AER LINGUS GROUP PLC - ANNUAL REPORT 2008 Monthly monitoring of performance...

  • Page 34
    ... in the year ended 31 December 2008 Board Name Position Audit Remuneration Committees Appointments Safety Risk Colm Barrington(1) John Sharman(2) Dermot Mannion AER LINGUS GROUP PLC - ANNUAL REPORT 2008 Chairman Former Chairman Former Chief Executive Officer Finance Director Chief Financial Of...

  • Page 35
    ... AER LINGUS GROUP PLC - ANNUAL REPORT 2008 health insurance, life assurance and car allowance. As members of the Board of Directors, they also receive Directors' fees. Basic Salary Reviews The basic salaries of executive Directors are reviewed annually having regard to personal performance, Company...

  • Page 36
    ...amount has been charged to the income statement in relation to the estimated cost of shares which could vest under the 2007 and 2008 LTIPs. In respect of the conditional award of shares granted to Mr Dermot Mannion an amount of â,¬209,566 has been charged. Mr Dermot Mannion resigned as a Director on...

  • Page 37
    ... Transfer value of increase Total accumulated accrued benefit at year end â,¬'000 â,¬'000 Executive Directors Greg O'Sullivan Dermot Mannion 26 9 165 74 134 66 AER LINGUS GROUP PLC - ANNUAL REPORT 2008 In the year ended 31 December 2008, the Company paid contributions of â,¬24,542 to a pension...

  • Page 38
    ...the year, on AER LINGUS GROUP PLC - ANNUAL REPORT 2008 As far as the Company is aware, other than stated above, no other person or Company has an interest of more than 3% in the share capital of the Company. Accounting Policies The Group accounts are prepared under International Financial Reporting...

  • Page 39
    ... presume that the group and the parent company will continue in business. The Directors are also required by applicable law and the Listing Rules issued by the Irish Stock Exchange, to prepare a directors' report and reports relating to Directors' remuneration and corporate governance. In accordance...

  • Page 40
    ... to ensure that shareholdings of nonEU nationals in the Company's share capital are not of such a size or type which could jeopardise Aer Lingus' air carrier rights. The Directors have the power to designate a maximum Regulations 2006" For the purpose of Regulation 21 of SI 255/2006 "EC (Takeover...

  • Page 41
    - Details of key performance indicators related to employee matters, e.g. change in number of employees, on page 67. The Directors confirm that to the best of their knowledge, the annual report and the financial statements, prepared in accordance with applicable law and International Financial ...

  • Page 42
    ... of Changes in Equity and the related notes. These financial statements have been prepared under the accounting policies set out therein. AER LINGUS GROUP PLC - ANNUAL REPORT 2008 We also report to you if, in our opinion, any information specified by law or the Listing Rules of the Irish Stock...

  • Page 43
    ... in accordance with the Companies Acts, 1963 to 2006 and Article 4 of the IAS Regulation. AER LINGUS GROUP PLC - ANNUAL REPORT 2008 We have obtained all the information and explanations which we consider necessary for the purposes of our audit. In our opinion proper books of account have been kept...

  • Page 44
    Consolidated Income Statement Year ended 31 December Notes 2008 â,¬'000 2007 â,¬'000 Revenue Operating expenses Staff costs, pre exceptional Depreciation and amortisation Aircraft operating lease costs Fuel and oil costs Maintenance expenses Airport charges En-route charges Distribution charges ...

  • Page 45
    ...,279 1,007,668 663,100 3,797 105,823 119,513 892,233 AER LINGUS GROUP PLC - ANNUAL REPORT 2008 Current assets Inventories Derivative financial instruments Trade and other receivables Current income tax receivables Other current financial assets Cash, cash equivalents and deposits with maturity...

  • Page 46
    Company Balance Sheet As at 31 December Notes 2008 â,¬'000 2007 â,¬'000 ASSETS Non-current assets Financial assets 28 109,696 109,696 Current assets Trade and other receivables AER LINGUS GROUP PLC - ANNUAL REPORT 2008 29 810,650 920,346 805,788 915,484 Total assets EQUITY Called up share ...

  • Page 47
    ...,912 943,912 AER LINGUS GROUP PLC - ANNUAL REPORT 2008 - Deferred tax on fair value gains in the year Cash ï¬,ow hedges - Fair value gains in the year - Deferred tax on fair value gains in the year - Transfer to fuel costs - Deferred tax on transfer to fuel costs - Transfer to other (gains)/losses...

  • Page 48
    ... redemption reserve fund â,¬'000 Share premium â,¬'000 Retained earnings â,¬'000 Total equity â,¬'000 Balance at 1 January 2007 21,22 26,450 497,958 5,048 343,516 38,237 911,209 AER LINGUS GROUP PLC - ANNUAL REPORT 2008 Issue of bonus shares Issue of new shares Balance at 31 December...

  • Page 49
    ...Cash, cash equivalents and bank overdrafts at end of the year The notes on pages 48 to 84 are an integral part of the financial statements. 27 (8,627) (17,684) 5,046 (21,265) 59,122 (22,437) (4,002) 32,683 AER LINGUS GROUP PLC - ANNUAL REPORT 2008 10 (114,490) (5,619) (44,099) 46,766 (117,442...

  • Page 50
    ... listing on the Irish Stock Exchange and a secondary listing on the London Stock Exchange. These financial statements were authorised for issue by the Board of Directors on 27 April 2009. The financial statements are for the AER LINGUS GROUP PLC - ANNUAL REPORT 2008 Group for the financial years...

  • Page 51
    ... improvements project published in May 2008. Entities whose ordinary activities comprise renting and subsequently selling assets present proceeds from the sale of those assets as revenue and should transfer the carrying amount of the asset to inventories AER LINGUS GROUP PLC - ANNUAL REPORT 2008 49

  • Page 52
    ... benefit promises are affected AER LINGUS GROUP PLC - ANNUAL REPORT 2008 by future salary increases is a curtailment, while an amendment that changes benefits attributable to past service gives rise to a negative past service cost if it results in a reduction in the present value of the defined...

  • Page 53
    ... straight-line method. • Amendment to IAS 39 Financial Instruments: Recognition and Measurement (effective for accounting periods beginning on or after 1 January 2009). The amendment is part of the IASB's annual improvements project published in May 2008. AER LINGUS GROUP PLC - ANNUAL REPORT 2008...

  • Page 54
    ... and documenting hedges states that a hedging instrument needs to involve a party external to the reporting entity and cites a segment as an example of a reporting entity. This means that in order for hedge accounting to AER LINGUS GROUP PLC - ANNUAL REPORT 2008 be applied at segment level, the...

  • Page 55
    ...an impact on the Group's financial statements. AER LINGUS GROUP PLC - ANNUAL REPORT 2008 2. Accounting policies 2.1 Consolidation Subsidiaries are all entities over which the Group has the power to govern the financial and operating policies, generally accompanying a shareholding of more that one...

  • Page 56
    ...are recognised in the income statement, except when deferred in equity as qualifying cash ï¬,ow hedges. AER LINGUS GROUP PLC - ANNUAL REPORT 2008 2.4 Property, plant and equipment All property, plant and equipment is stated at cost or deemed cost less depreciation. Cost includes expenditure that is...

  • Page 57
    ...ow analysis. When securities classified as available-for-sale are sold or impaired, the accumulated fair value adjustments recognised in equity are included in the income statement. The Group assesses at each balance sheet date whether there is objective evidence that a financial asset or a Group...

  • Page 58
    ... value may AER LINGUS GROUP PLC - ANNUAL REPORT 2008 not be recoverable. 2.8 Derivative financial instruments and hedging activities Derivatives are used by the Group to manage interest rate, foreign exchange and commodity price risk. Derivatives are initially recognised at fair value on the date...

  • Page 59
    ... income tax asset is realised or the deferred income tax liability is settled. Deferred income tax assets are recognised to the extent that it is probable that future taxable profits will be available against which the temporary differences can be utilised. AER LINGUS GROUP PLC - ANNUAL REPORT 2008...

  • Page 60
    ... Deferred tax related to fair value remeasurement of available-for-sale investments and cash ï¬,ow hedges, which are charged or credited directly to equity, is also credited or charged directly to equity and is subsequently recognised in the income statement AER LINGUS GROUP PLC - ANNUAL REPORT 2008...

  • Page 61
    ..., are charged to the income statement on a straight-line basis over the period of the lease. 2.19 Called up share capital Ordinary shares are classified as equity. Incremental costs directly attributable to the issue of new shares or options are shown in equity as a deduction, net of tax, from...

  • Page 62
    ... of volatility in currency, interest rates and other markets, on the Group's performance. AER LINGUS GROUP PLC - ANNUAL REPORT 2008 The purpose of the Board approved Aer Lingus Group plc Treasury Policy (the "Treasury Policy") is to regulate how the operations of the individual treasury activities...

  • Page 63
    ... year. The products used by the treasury function in managing commodity price risk are predominantly commodity swaps. A US $10 increase in the price per tonne of jet fuel in 2008 would have increased fuel costs by $5.4m. b) Credit risk Credit risk is managed on a group basis. Credit exposures result...

  • Page 64
    ...1-2 Years â,¬'000 2-5 Years â,¬'000 Over 5 Years â,¬'000 Total â,¬'000 At 31 December 2008 Borrowings Trade and other payables AER LINGUS GROUP PLC - ANNUAL REPORT 2008 128,812 415,838 66,480 - 141,915 - 351,077 - 688,284 415,838 At 31 December 2007 Borrowings Trade and other payables 34...

  • Page 65
    ... funding status of the Irish Pension Schemes arises, IAS 19 requires the Group to include any pension fund surplus or deficit on its balance sheet and reï¬,ect any period on period movements in its income statement or the statement of changes in equity. AER LINGUS GROUP PLC - ANNUAL REPORT 2008 63

  • Page 66
    ... on Board sales, are included in the passenger segment together with their associated costs. For internal management purposes, direct operating costs are allocated between the segments based on their contributions to route revenue. Certain AER LINGUS GROUP PLC - ANNUAL REPORT 2008 costs, assets...

  • Page 67
    ...,206 961,096 1,311,790 263,669 3,253 670,184 937,106 AER LINGUS GROUP PLC - ANNUAL REPORT 2008 Other segment information Capital additions (3) 2008 2007 â,¬'000 â,¬'000 Depreciation (3) 2008 â,¬'000 2007 â,¬'000 Passenger Cargo Common assets and liabilities Total (3) 3,624 248 111,547 115,419...

  • Page 68
    .../(gains) on operating activities AER LINGUS GROUP PLC - ANNUAL REPORT 2008 (8,829) (8,796) 3 Operating (loss)/profit before net exceptional items The operating (loss)/profit before net exceptional items is stated after charging/(crediting): 2008 â,¬'000 2007 â,¬'000 Depreciation of property...

  • Page 69
    ... 2007 â,¬'000 Finance income Interest on cash and term deposits Interest income on other financial assets (Note 12) Amortisation of available-for-sale reserve (Note 12) Dividends received 54,798 4,420 1,642 60,860 56,508 5,637 2,998 65,143 AER LINGUS GROUP PLC - ANNUAL REPORT 2008 Finance costs...

  • Page 70
    ... 7 Income tax (i) Income tax (credit)/expense recognised in the income statement 2008 â,¬'000 2007 â,¬'000 Current taxation Irish corporation tax Deferred tax Origination and reversal of temporary differences (Note 20) Total income tax (credit)/expense - AER LINGUS GROUP PLC - ANNUAL REPORT 2008...

  • Page 71
    ... Leased assets included in above (net book value) 31 December 2008 31 December 2007 707,640 197,106 (10,925) 893,821 41,509 83 (3,306) 38,286 53,599 2,074 (5,183) 50,490 35,838 1,341 (5,950) 31,229 838,586 200,604 (25,364) 1,013,826 AER LINGUS GROUP PLC - ANNUAL REPORT 2008 210,096 59,056 (10...

  • Page 72
    ... Financial Statements continued 10 Intangible assets Computer software 2008 â,¬'000 2007 â,¬'000 AER LINGUS GROUP PLC - ANNUAL REPORT 2008 Cost Beginning of year Additions Disposals Transfer from property, plant and equipment End of year Aggregate amortisation Beginning of year Charge for the year...

  • Page 73
    ...ability to hold these financial assets until maturity. Available-for-sale financial assets 2008 â,¬'000 2007 â,¬'000 AER LINGUS GROUP PLC - ANNUAL REPORT 2008 Beginning of year Disposals Exchange differences Interest income Revaluation movement transferred to equity Reclassification to loans and...

  • Page 74
    ... of the outstanding contracts at 31 December 2008 were â,¬348.8m (2007: â,¬94.0m). The outstanding fuel price contracts at 31 December 2008 amounted to 541,917 metric tonnes of aircraft fuel (2007: 175,782 metric tonnes). The maximum exposure to credit risk at the reporting date is the fair value of...

  • Page 75
    ...000 2007 â,¬'000 AER LINGUS GROUP PLC - ANNUAL REPORT 2008 Trade receivables Other amounts receivable Prepayments and accrued income Value Added Tax 33,049 50,395 4,120 1,337 88,901 30,230 30,753 3,495 741 65,219 The fair values of trade and other receivables approximate their book values. There...

  • Page 76
    ... 2008 â,¬'000 2007 â,¬'000 Trade payables Accruals and deferred income Ticket sales in advance Employment related taxes ESOT (Note 23) - profit sharing scheme Other amounts payable 67,066 91,334 146,779 15,561 95,098 415,838 57,688 103,422 164,846 10,988 9,827 88,486 435,257 The carrying...

  • Page 77
    ...Finance lease obligations Repayable - within one year - from one to two years - from two to five years - after five years 104,949 45,609 92,037 310,274 552,869 Less current portion Non-current portion (104,949) 447,920 24,807 56,433 AER LINGUS GROUP PLC - ANNUAL REPORT 2008 - 17,138 121,280 155...

  • Page 78
    ... forward market rates. In 2008, these rates AER LINGUS GROUP PLC - ANNUAL REPORT 2008 ranged from 1.5% to 3.7%. The carrying amounts of short-term borrowings approximate their fair values. The carrying amounts of the Group's borrowings are denominated in the following currencies: 2008 â,¬'000 2007...

  • Page 79
    ... is released or charged to the income statement. (c) Maintenance contracts A provision was made for the onerous element of contracts entered into as part of the disposal of the Group's maintenance activities and was fully utilised during the year. (d) Other Other provisions relate mainly to the...

  • Page 80
    ...) AER LINGUS GROUP PLC - ANNUAL REPORT 2008 41,608 (39,719) 1,889 27,291 (46,607) (19,316) The gross movement on the deferred income tax account is as follows: 2008 â,¬'000 2007 â,¬'000 Deferred income tax (liability)/asset at beginning of the year Income statement credit/(charge) Tax credited...

  • Page 81
    ...: Fair value reserves in shareholders' equity - Cash ï¬,ow hedging reserve - Revaluation reserve on available-for-sale financial assets Share based payment reserve 9,048 369 (93) 9,324 (2,717) (415) (61) (3,193) AER LINGUS GROUP PLC - ANNUAL REPORT 2008 21 Called-up share capital 2008 â,¬'000 2007...

  • Page 82
    ... Financial Statements continued 22 Share premium, capital conversion reserve fund, and other reserves (continued) 2008 â,¬'000 2007 â,¬'000 Other reserves Available-for-sale reserve Beginning of year Movement in year Deferred tax on movement in year AER LINGUS GROUP PLC - ANNUAL REPORT 2008...

  • Page 83
    ... of the plan. Impact on Group income statement The total expense is analysed as follows: AER LINGUS GROUP PLC - ANNUAL REPORT 2008 Expense in consolidated income statement 2008 Long Term Incentive Plan Staff costs The 2008 awards will expire in 2010. The fair value of the shares awarded were...

  • Page 84
    ...The Group's contributions charged for the year were â,¬29.3m (2007: â,¬23.5m), based on rates specified by the scheme rules. The actuarial reports are not available for public inspection. At the time of the IPO, the Group reached agreement with the trade unions representing the majority of staff to...

  • Page 85
    ...ve years Later than five years 5,360 16,356 29,493 51,209 49,428 97,437 5,619 152,484 73 73 AER LINGUS GROUP PLC - ANNUAL REPORT 2008 26 Related party transactions Key management compensation 2008 â,¬'000 2007 â,¬'000 Short-term employee benefits Post employment benefits Directors fees Other...

  • Page 86
    ... 2007 â,¬'000 Cost Beginning of year Movement in year End of year AER LINGUS GROUP PLC - ANNUAL REPORT 2008 109,696 109,696 328,367 (218,671) 109,696 The movement in 2007 related to intra group transfer of subsidiaries. Details of the principal group companies are included in Note 11. 29 Trade...

  • Page 87
    ... H1 Results 2009 FY Ends 5 June 2009 30 June 2009 August 2009 31 December 2009 Share Price Data 2008 AER LINGUS GROUP PLC - ANNUAL REPORT 2008 e Share price movement between listing and year end - High - Low Share price at 31 December 2008 Market capitalisation at 31 December 2008 Share price at...

  • Page 88
    ... presentations to analysts and investors. News releases are also made available in this section of the website immediately after release to the Stock Exchanges. Investor Relations AER LINGUS GROUP PLC - ANNUAL REPORT 2008 Company Officers and Advisors Directors Colm Barrington Sean Coyle Laurence...

  • Page 89
    ... GROUP PLC - ANNUAL REPORT 2008 2007 % change 5.6% 13.0% (5.0pt) 10.9% 2.1% 11.1% Short haul Number of routes ï¬,own Number of sectors ï¬,own (ï¬,ights) Average sector length (in kilometres) Number of passengers (in thousands) Average fare (including airport charges/taxes) (in â,¬) Average block...

  • Page 90
    88 AER LINGUS GROUP PLC - ANNUAL REPORT 2008 Notes

  • Page 91
    "The real asset to Aer Lingus are their crew, everything done with a smile, nothing seemed too much bother, making a genuine effort with the passengers and a sense that they really enjoyed what they were doing." ONLINE AER LINGUS TRIP REVIEW: 25 January 2009

  • Page 92