Ryanair 2011 Annual Report Download - page 181

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23 Commitments and contingencies
Commitments
In January 2002, the Company entered into a contract with Boeing (the “2002 Boeing contract”)
whereby the Company agreed to purchase 100 new Boeing 737-800 “next generation” aircraft, and received
purchase rights to acquire a further 50 such aircraft. The 2002 Boeing contract was superseded by a contract
entered into with Boeing in January 2003 (the “2003 Boeing contract”) whereby the Company agreed to
purchase 125 new Boeing 737-800 “next generation” aircraft, thus adding “firm” orders for 22 aircraft to the
existing “firm” orders (100 “firm” orders, plus three options exercised) under the 2002 Boeing contract. In
addition, the Company acquired purchase rights over a further 78 aircraft, bringing the number of option aircraft
to 125.
In February 2005, the Company entered into another contract with Boeing (the “2005 Boeing
contract”) whereby the Company agreed to purchase 70 new Boeing 737-800 “next generation” aircraft and
acquired additional purchase rights to acquire a further 70 such aircraft over a five-year period from 2006 to
2012. The aircraft to be delivered after January 1, 2005, arising from the 2002 and 2003 Boeing contracts,
benefit from the discounts and concessions under the 2005 Boeing contract. In addition, the orders for the 89
“firm” aircraft still to be delivered at January 1, 2005 and the remaining additional purchase rights in respect of
123 aircraft granted under the 2002 and 2003 Boeing contracts are governed by the 2005 Boeing contract from
January 2005.
In August 2006 the Company exercised 32 options under the 2005 contract whereby it increased its
“firm” aircraft deliveries by this amount during fiscal 2009 (22) and 2010 (10).
In April 2007 the Company exercised 27 options under the 2005 contract whereby it increased its
“firm” aircraft deliveries during fiscal 2010.
In June 2008, the Company exercised three options with Boeing under the terms of its 2005 contract.
These “firm” Boeing 737-800 aircraft were delivered in fiscal 2011.
In September 2008, the Company exercised four options with Boeing under the terms of its 2005
contract. These “firm” Boeing 737-800 aircraft were delivered in fiscal 2011.
In October 2008, the Company exercised 10 options with Boeing under the terms of its 2005 contract.
These “firm” Boeing 737-800 aircraft were delivered in fiscal 2011.
In January 2009, the Company exercised 13 options with Boeing under the terms of its 2005 contract.
These “firm” Boeing 737-800 aircraft were delivered in fiscal 2011.
In December 2009, the Company exercised 10 options with Boeing under the terms of its 2005
contract. These “firm” Boeing 737-800 aircraft will be delivered in fiscal 2013.
The table below details the firm aircraft delivery schedule at March 31, 2011 and March 31, 2010 for
the Company pursuant to the 2005 Boeing contract.
Aircraft
Delivered at
March 31,
2011
Firm Aircraft
Deliveries
Fiscal 2012 / 2013
Total “Firm”
Aircraft
Basic price
per aircraft
(U.S.$
million)
Firm Aircraft
Deliveries
Fiscal 2011-
2013 at
March 31,
2010
2005 Contract
.......................
205 40 245 51 90
Total ................................
......
205 40 245 90
The “Basic Price” (equivalent to a standard list price for an aircraft of this type) for each aircraft
governed by the 2005 Boeing contract will be increased by (a) an estimated U.S.$900,000 per aircraft for certain
“buyer furnished” equipment the Company has asked Boeing to purchase and install on each of the aircraft, and