Notes index
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27 Long-term borrowings

£ million	2008	2007	2008	2007
	Group		Company
a Current
Loans, finance leases and hire purchase arrangements:
Bank and other loans	113	68	102	57
Finance leases*	64	80	73	87
Hire purchase arrangements	246	269	246	269
	423	417	421	413
b Non-current
Loans, finance leases and hire purchase arrangements:
Bank and other loans	764	878	554	657
Finance leases*	1,376	1,275	1,567	1,476
Hire purchase arrangements	611	776	611	776
Loans from subsidiaries			239	204
	2,751	2,929	2,971	3,113

* Included in finance leases for the Company is £200 million (2007: £209 million) of finance leases with other subsidiaries of the Group, of which £9 million (2007: £8 million) is classified as current.

Bank and other loans are repayable up to the year 2019. Bank and other loans of the Group amounting to US$132 million (2007: US$155 million), and £410 million (2007: £437 million) and bank loans of the Company amounting to US$132 million (2007: US$155 million) and £189 million (2007: £205 million) are secured on aircraft. Euro-sterling notes, other loans and loans from subsidiary undertakings are not secured. Finance leases and hire purchase arrangements are all secured on aircraft or property assets.

c Bank and other loans

Bank and other loans comprise the following:

£ million	2008	2007	2008	2007
	Group		Company
£250 million fixed rate 8.75 per cent eurobonds 2016	248	248	248	248
£100 million fixed rate 10.875 per cent eurobonds 2008	61	61	61	61
Floating rate sterling mortgage loans secured on aircraft	201	213	153	162
Floating rate US dollar mortgage loans secured on aircraft	67	79	67	79
Fixed rate sterling mortgage loans secured on aircraft	209	224	36	42
Floating rate US dollar mortgage loans not secured on aircraft	40	45	40	45
European investment bank loans	51	76	51	77
	877	946	656	714
Less: current instalments due on bank loans	113	68	102	57
	764	878	554	657

£250 million fixed rate 8.75 per cent unsecured eurobonds 2016 are repayable in one instalment on August 23, 2016.

£100 million fixed rate 10.875 per cent unsecured eurobonds 2008 are repayable in one instalment on June 15, 2008.

Floating rate sterling mortgage loans are secured on specific aircraft assets of the Group and bear interest of between 0.53 per cent and 0.59 per cent above LIBOR. The loans are repayable between 2015 and 2019.

Floating rate US dollar mortgage loans are secured on specific aircraft assets of the Group and bear interest of between 0.40 per cent and 0.99 per cent above LIBOR. The loans are repayable between 2009 and 2016.

Fixed rate sterling mortgage loans are secured on specific aircraft assets of the Group and bear interest at 6.14 per cent to 7.35 per cent. The loans are repayable between 2012 and 2016.

Floating rate US dollar mortgage loans are unsecured and bear interest of 0.09 per cent above LIBOR. The loans are repayable in 2014.

European investment bank loans are secured on certain property assets of the Group and bear interest of between 0.20 per cent below LIBOR and LIBOR. The loans are repayable between 2014 and 2017.

d Total loans, finance leases and hire purchase arrangements

£ million	2008	2007	2008	2007
	Group		Company
Loans
Bank:
US dollar	$211m	$242m	$211m	$242m
Sterling	£461m	£514m	£240m	£282m
	568	637	347	405
Euro-sterling notes:
Sterling	309	309	309	309
Loans from subsidiary undertakings:
Euro			€300m	€300m
			239	204
Finance leases:
US dollar	$1,205m	$991m	$1,205m	$990m
Sterling	£834m	£849m	£1,034m	£1,058m
	1,440	1,355	1,640	1,563
Hire purchase arrangements:
Japanese yen	¥112,442m	¥129,694m	¥112,442m	¥129,694m
US dollar	$89m	$104m	$89m	$104m
Sterling	£244m	£430m	£244m	£430m
	857	1,045	857	1,045
	3,174	3,346	3,392	3,526

e Obligations under finance leases and hire purchase contracts

The Group uses finance leases and hire purchase contracts principally to acquire aircraft. These leases have both renewal options and purchase options. These are at the option of the Group. Future minimum lease payments under finance leases and hire purchase contracts are as follows:

£ million	2008	2007	2008	2007
	Group		Company
Future minimum payments due:
Within one year	389	440	407	458
After more than one year but within five years	1,218	1,298	1,303	1,380
In five years or more	1,268	1,306	1,431	1,500
	2,875	3,044	3,141	3,338
Less: finance charges allocated to future periods	578	644	644	730
Present value of minimum lease payments	2,297	2,400	2,497	2,608
The present value of minimum lease payments is analysed as follows:
Within one year	310	349	319	348
After more than one year but within five years	989	1,048	1,040	1,102
In five years or more	998	1,003	1,138	1,158
	2,297	2,400	2,497	2,608

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