- We are fortunate to have a strong balance sheet - Aer Lingus had €908.5 million of gross cash as at 31 December 2012.
- There are good practical reasons for maintaining a strong balance sheet now. It gives confidence to lessors and to counterparties on whom we rely for fuel and FX hedging lines. It also gives confidence to investors.
- Our balance sheet must be able to withstand:
- Frequent occurrence of ‘shocks’ such as spikes in the fuel price or the 2010 Icelandic volcanic ash disruption;
- The ability to support a significant aircraft purchase programme, which may be committed many years into the future.
- The cyclicality of the airline industry, meaning that there may be a need to fund losses in a downturn, before profitability returns.