Aer Lingus 2011 Annual Report Download - page 117

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FINANCIAL STATEMENTS Aer Lingus Group Plc
Annual Report 2011 115
Notes to the consolidated financial statements (continued)
35 Financial assets
Investment in subsidiaries
2
20
01
11
12010
¤
¤’
’0
00
00
0¤’000
C
Co
os
st
t
At 1 January and 31 December 1
15
59
9,
,6
69
97
7109,696
During 2011, the Group subscribed for an additional ¤50.0m of share capital in Aer Lingus Limited. The consideration in respect of these
shares was offset against amounts due from Aer Lingus Limited to Aer Lingus Group plc. As a result of this transaction and the inter group
transfer of deposits and dividends, the loan receivable from Aer Lingus Limited reduced from ¤833.8m at 31/12/2010 to ¤699.8m at
31/12/2011. On 23 March 2012, Aer Lingus Group plc subscribed for additional share capital in Aer Lingus Limited. See Note 36 for
further details.
36 Events after the reporting period
On 14 March 2012, Aer Lingus and its Aer Lingus Regional franchise partner, Aer Arann, announced an expansion of the existing
franchise relationship. Aer Arann will operate all of its services between Ireland and the UK, France and the Isle of Man under the Aer
Lingus Regional brand from 25 March 2012. Aer Arann will continue to assume full operational and commercial responsibility for the
services covered by the franchise agreement, with Aer Lingus receiving a franchise fee in recognition for providing its brand and product
suite to Aer Arann.
The EU emissions trading system (“EU ETS”) became effective for Airlines from 1 January 2012. Under the EU ETS, all flights departing
from and arriving at EU airports must pay for a portion of their carbon emissions. Aer Lingus has received free allowances amounting to
80% of its 2012 requirement under the EU ETS. The Group has purchased the balance of its 2012 requirements for ¤1.66 million.
On 23 March 2012, Aer Lingus Group plc subscribed for an additional 64,000,000 ordinary shares of ¤1.25 each in its wholly owned
subsidiary, Aer Lingus Limited. The shares were issued at par and the total consideration was ¤80.0m. The amount payable was offset
against the intercompany loan due to Aer Lingus Group plc from Aer Lingus Limited.