Ryanair 2009 Annual Report Download - page 174

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174
Total future minimum payments due under operating leases
At March 31,
Minimum
payments
Present value of
minimum
payments
Minimum
payments
Present value of
minimum
payments
2009 2009 2008 2008
€000 €000 €000
Due within one year
........................
85,799 78,849 78,210 71,875
Due between one and five years
......
177,784 134,933 234,823 180,409
Due after five years
.........................
29,095 17,195 22,243 13,371
Total ................................
................
292,678 230,977 335,276 265,655
The above table sets out the committed future cost of leasing 43 (2008: 35) Boeing 737-800 “next
generation” aircraft at March 31, 2009 and 2008, respectively.
Commitments resulting from the use of derivative financial instruments by the Company are described
in Notes 5 and 11 to the consolidated financial statements.
Contingencies
The Company is engaged in litigation arising in the ordinary course of its business. Management does
not believe that any such litigation will individually or in aggregate have a material adverse effect on the
financial condition of the Company. Should the Company be unsuccessful in these litigation actions,
management believes the possible liabilities then arising cannot be determined but are not expected to materially
adversely affect the Company’s results of operations or financial position.
The Company has also entered into a series of interest rate swaps to hedge against fluctuations in
interest rates for certain floating-rate financing arrangements. Cash deposits have been set aside as collateral to
mitigate the counterparty risk of fluctuations on long-term derivative and other financing arrangements
(restricted cash) (see Note 9 to the consolidated financial statements for further details). Additional numerical
information on these swaps and on other derivatives held by the Company is set out in Notes 5 and 11 to the
consolidated financial statements.
In February 2004, the European Commission ruled that Ryanair had received illegal state aid from the
Walloon regional government in connection with its establishment of a low cost base at Brussels (Charleroi).
Ryanair advised the regional government that it believed no money was repayable as the cost of establishing the
base exceeded the amount determined to be illegal state aid. Ryanair also appealed the decision of the European
Commission to the European Court of First Instance, requesting that the Court annul the decision on the basis
that Ryanair’s agreement at Brussels (Charleroi) was consistent with agreements at similar privately owned
airports and therefore did not constitute illegal state aid. The Company placed €4 million in an escrow account
pending the outcome of this appeal. In December 2008, the CFI annulled the Commission’s decision against
Charleroi Airport and Ryanair was repaid the €4 million that the Commission had claimed was illegal state aid.
A further action taken by the Belgian government for €2.3 million has also been withdrawn.