Aer Lingus 2011 Annual Report Download - page 81

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Annual Report 2011 79
Notes to the consolidated financial statements (continued)
FINANCIAL STATEMENTS Aer Lingus Group Plc
(c) Liquidity risk
The principal policy objective in relation to liquidity is to ensure that the Group has access at minimum cost, to sufficient liquidity to
enable it to meet its obligations as they fall due and to provide adequately for contingencies. In implementing this policy, the Group
is required to maintain, at all times, access to Board approved minimum requirements. In addition, this liquidity requirement, once
drawn, must continue to be accessible for an agreed further period. Cash balances in excess of these levels are normally maintained
in order to enable the Group to take advantage of commercial opportunities and withstand business shocks.
The Group has long-term debt associated with aircraft acquisitions. All borrowing is undertaken by the group treasury function.
Group policy is to maintain, at all times, cash and/or committed facilities for a high proportion of the net forecasted debt repayments
for the following 12 months.
The Group has capital commitments of ¤911.8m (2010: ¤903.4m) of which ¤908.5m (2010: ¤902.5m) relate to aircraft and
equipment. The Group currently expects to finance these commitments with a combination of finance lease and outright purchase.
Further options under consideration include utilisation of sale and leaseback finance.
The table below analyses the Group’s financial liabilities into relevant maturity groupings based on the remaining period at the
statement of financial position date to the contractual maturity date. The amounts disclosed in the table are the contractual
undiscounted cash flows, including interest. Trade and other payables exclude deferred income.