Ryanair 2009 Annual Report Download - page 87

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The below table summarizes the delivery schedule for the Boeing 737-800 aircraft Ryanair has
purchased, or is required to purchase, under its past and current contracts with Boeing, including through the
exercise of purchase options. These Boeing 737-800s are identical in all significant respects, having 189 seats
and the same cockpit and engine configuration. The table also provides details of the “Basic Price” (equivalent
to a standard list price for an aircraft of this type) for each of these aircraft. The Basic Price for each of the firm-
order aircraft to be delivered pursuant to the 2005 Boeing contract, as well as for each of the firm-order aircraft
that remained to be delivered and purchase options outstanding under the prior contracts at January 1, 2005, will
be increased by (a) an estimated $900,000 per aircraft for certain “buyer furnished” equipment the Company has
asked Boeing to purchase and install on each of the aircraft, and (b) an “Escalation Factor” designed to increase
the Basic Price of any individual aircraft to reflect increases in the published U.S. Employment Cost and
Producer Price indices from the time the Basic Price is set through the time six months prior to the delivery of
such aircraft. The Basic Price is also subject to decrease to take into account certain concessions granted to the
Company by Boeing pursuant to the terms of the contracts. These concessions take the form of credit
memoranda, which the Company may apply towards the purchase of goods and services from Boeing or towards
certain payments in respect of the purchase of the aircraft. These credit memoranda are generally incorporated
into Boeing’s final aircraft invoices and thus reduce the amount paid by Ryanair for aircraft. Boeing and CFM
International S.A. (the manufacturer of the CFM56-7B engines that power the Boeing 737-800 aircraft) have
also agreed to give the Company certain allowances for promotional and other activities, as well as provide
other goods and services to the Company on concessionary terms. As a result of credit memoranda received
from Boeing, the effective price of each aircraft purchased in the past has been, and the effective prices of
aircraft to be delivered in the future are expected to be, significantly below the unadjusted Basic Prices in the
following table.
Aircraft Delivery Schedule
Deliveries and Scheduled
Deliveries in the Fiscal Year
ending March 31,
1998
Boeing
Contract
(Incl.
Options)
2002
Boeing
Contract
(Incl.
Options)
2003
Boeing
Contract
(Incl.
Options)
2005
Boeing
Contract
(Incl.
Options) 737-800 Disposals
Total
No. of
Boeing
737-800
Aircraft
1999 ........................... 1 — — — — 1
2000 ........................... 4 — — — — 4
2001 ........................... 10 — — — — 10
2002 ........................... 5 — — — — 5
2003 ........................... 8 5 13
2004 ........................... — 18 — — — 18
2005 ........................... — 13 14 — — 27
2006 ........................... — 16 9 — — 25
2007 ........................... — 27 1 2 — 30
2008 ........................... — 21 — 15 (6) 30
2009 ........................... — 3 — 32 (17)(a) 18
Total as of
March 31, 2009
.....
28 103 24 49 (23) 181
2010 ........................... — — — 54 (3) 51
2011 ........................... — — — 65 (10) 55
2012 ........................... — — — 15 (10) 5
Expected Total as of March
31, 2012
.................
28 103 24 183 (46)(b) 292
Basic Price per aircraft
(unadjusted) (in millions) $47 $51 $51 $51
______________
(a) This includes the aircraft that was involved in the bird strike incident at Rome (Ciampino) airport in November 2008,
which has not been sold and remains the property of Ryanair (albeit in its un-repaired state).
(b) At June 30, 2009 the Company had sold and delivered a cumulative total 25 Boeing 737-800 aircraft (including three
aircraft disposed of in April 2009. The Company expects to dispose of 20 further aircraft before March 2012 (which,
when added to the 25 completed disposals, and the aircraft disabled by the bird strike and thus listed as a disposal,
brings the total number of disposals to 46). To this end, the Company may choose to dispose of aircraft through sale
and/or non-renewal of 11 operating leases due to expire in 2010 and 2011.