EasyJet 2011 Annual Report Download - page 85

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9 Loan notes
In 2001, easyJet in a consortium with six other UK airlines formed The Airline Group Limited in order to acquire
a minority interest in NATS, the company that owns the UK air traffic control system. easyJet’s investment
is principally in the form of unsecured loan notes bearing interest at a fixed rate of 8%. Interest receivable
is settled by the issue of additional loan notes. Redemption is governed by a priority agreement among
the consortium members.
2011
£ million
2010
£ million
At 1 October 13 13
Interest receivable converted to loan notes 1 1
Redemption of loan notes (3) (1)
At 30 September 11 13
10 Other non-current assets
2011
£ million
2010
£ million
Recoverable supplemental rent (pledged as collateral) 40 49
Deposits held by aircraft lessors 17 1
Other 6 4
63 54
Supplemental rent is pledged to lessors to provide collateral should an aircraft be returned in a condition that
does not meet the requirements of the lease and is refunded when qualifying heavy maintenance is performed,
or is offset against the costs incurred at the end of the lease.
11 Trade and other receivables
2011
£ million
2010
£ million
Trade receivables 84 77
Less provision for impairment (3) (3)
81 74
Other receivables 27 31
Recoverable supplemental rent (pledged as collateral) 11 13
Prepayments and accrued income 46 76
165 194
Supplemental rent is pledged to lessors to provide collateral should an aircraft be returned in a condition that
does not meet the requirements of the lease and is refunded when qualifying heavy maintenance is performed,
or is offset against the costs incurred at the end of the lease.
Allowance for credit losses
Movements in the provision for impairment of trade receivables are shown below:
2011
£ million
2010
£ million
At 1 October 3 3
Increase in provision (included in “other costs”) – 1
Amounts written off – (1)
At 30 September 3 3
Trade receivables are monitored and allowances are created when there is evidence that amounts due,
according to the terms of the receivable, may not be collected.
easyJet plc
Annual report
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