Aer Lingus 2012 Annual Report Download - page 118

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FINANCIAL STATEMENTS Aer Lingus Group Plc
ANNUAL REPORT 2012
116
Amounts due to the Company from subsidiary undertakings are disclosed in Note 22. The Company’s investment in its subsidiaries is set out in
Note 37.
The Group’s contributions to its post employment benefit obligations are disclosed in Notes 26 and 27.
Contributions and commitments in respect of the Group’s joint venture are disclosed in Note 16.
The Group considers Pay and Shop Limited (trading as “Realex Payments”) to be a related party for the purposes of IAS 24 by virtue of the fact
that Mr Laurence Crowley, Chairman of Realex Payments, is also a Non-Executive Director of Aer Lingus Group plc. The Group engages Realex
Payments to provide on-line payment solutions. The Group’s business relationship with Realex Payments predates the appointment of Mr
Crowley as Chairman of Realex Payments. During the year, the Group incurred expenditure of €551,265 (2011: €578,956) on services provided
by Realex Payments. At the reporting date, there was a balance of €91,650 outstanding to Realex Payments from the Group (2011: €98,580).
These amounts are recorded in trade payables.
The Minister for Finance of Ireland holds 25.11% of the Group’s issued share capital and is entitled to appoint three directors to the Board. The
Group considers that, for the purpose of IAS 24 (2009) the government of Ireland is in a position to exercise significant influence over it, and
therefore regards the government of Ireland and various of its bodies, including the DAA and Tourism Ireland, as related parties for the purpose
of the disclosures required by IAS 24 (2009).
The Group has availed of the exemption available in paragraph 25 of IAS 24, and therefore has not provided detailed disclosure of its transactions
with the DAA or Tourism Ireland.
A summary of the Group’s transactions with the government of Ireland and its bodies is included below:
• The Group incurs rental charges in respect of office space, check in facilities and other operational facilities at various Irish airports. The
Group also incurs passenger, landing and other charges for the use of these airports. The Group incurs air navigation charges as a result of
services provided by the Irish Aviation Authority;
• The Group collects Airport Departure Tax and various payroll taxes on behalf of the Irish Revenue Commissioners and is liable to Irish
Corporation Tax on profits earned, and to employer’s PRSI on its payroll. The Group accounts for VAT in Ireland;
• The Group sells seats on its scheduled services to various Government bodies in the normal course of its business and has banking relationships
with institutions now controlled by the Irish government. As an airline, the Irish Department of Transport is the Group’s principal regulator;
and
• Tourism Ireland and the Group engage in co-marketing activities.
In addition to the transactions described above, the Group also entered into the following transactions with the DAA during 2012 and 2011:
• During the year the Group provided a guarantee to the DAA in connection with the assignment of its interest in the lease of a hangar facility
at Shannon airport. See Note 29 for details of this guarantee; and
• In 2011, the Group disposed of its leasehold interest in its Head Office Building to the Dublin Airport Authority. Details of the nature and
terms of this transaction are included in Note 9.
Notes to the consolidated financial statements (continued)