Ryanair 2009 Annual Report Download - page 91

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Contractual Obligations. The table below sets forth the contractual obligations and commercial
commitments of the Company with definitive payment terms, which will require significant cash outlays in the
future, as of March 31, 2009. These obligations primarily relate to Ryanair’s aircraft purchase and related
financing obligations, which are described in more detail above. For additional information on the Company’s
contractual obligations and commercial commitments, see Note 23 to the consolidated financial statements
included in Item 18.
The amounts listed under “Finance Lease Obligations” reflect the Company’s obligations under its
JOLCOs. See “Item 5. Operating and Financial Review and Prospects Liquidity and Capital Resources.”
The amounts listed under “Purchase Obligations” in the table reflect obligations for aircraft purchases
and are calculated by multiplying the number of aircraft the Company is obligated to purchase under its current
agreements with Boeing during the relevant period by the Basic Price for each aircraft pursuant to the relevant
contract, with the dollar-denominated Basic Price being converted into Euro at an exchange rate of
$1.3261=€1.00 (based on the Federal Reserve Rate on March, 31, 2009). The relevant amounts therefore
exclude the effect of the price concessions granted to Ryanair by Boeing and CFM, as well as any application of
the Escalation Factor. As a result, Ryanair’s actual expenditures for aircraft during the relevant periods will be
lower than the amounts listed under “Purchase Obligations” in the table.
With respect to purchase obligations under the terms of the 2005 Boeing contract, the Company was
required to pay Boeing 1% of the Basic Price of each of the 70 firm-order Boeing 737-800 aircraft at the time
the contract was signed in February 2005, and will be required to make periodic advance payments of the
purchase price for each aircraft it has agreed to purchase during the course of the two-year period preceding the
delivery of each aircraft. These payment terms also applied for the 89 aircraft that remained to be delivered
under the 2002 and 2003 Boeing contracts as of January 2005. As a result of these required advance payments,
the Company will have paid up to 30% of the Basic Price of each aircraft prior to its delivery (including the
addition of an estimated “Escalation Factor” but before deduction of any credit memoranda and other
concessions); the balance of the net price is due at the time of delivery.
The amounts listed under “Operating Lease Obligations” reflect the Company’s obligations under its
aircraft operating lease arrangements.
Obligations Due by Period
Contractual Obligations Total Less than 1 year 1-2 years 2-5 years After 5 years
(millions)
Long-term Debt(a)
......................
€1,810 €172 €177 €566 €895
Finance Lease Obligations
..........
588 31 32 107 418
Purchase Obligations
..................
5,127 2,066 2,487 574 -
Operating Lease Obligations
.....
293 86 69 109 29
Total Contractual Obligations
.....
€7,818 €2,355 €2,765 €1,356 €1,342
______________
(a) Amounts presented include the related interest expense that will be paid when due. For additional
information on Ryanair’s long-term debt obligations, see Note 11 to the consolidated financial statements
included in Item 18.
OFF-BALANCE SHEET TRANSACTIONS
Ryanair uses certain off-balance sheet arrangements in the ordinary course of business, including
financial guarantees and operating lease commitments. Details of each of these arrangements that have or are
reasonably likely to have a current or future material effect on the Company’s financial condition, results of
operations, liquidity or capital resources are discussed below.
Operating Lease Commitments. The Company has entered into a number of sale-and-leaseback
transactions in connection with the financing of a number of aircraft in its fleet. See “—Liquidity and Capital
Resources—Capital Resources” above for additional information on these transactions.