Neil Sorahan, Ryanair’s chief financial officer, has stated in a recent speech that the airline will rely on its own resources this year to finance the purchase of aircraft rather than tapping the bond markets again. Although Ryanair’s 2014 bond offering rose €850 million at 1.875%, the airline currently has gross cash of €4.5 million and net cash of €350 million making it more cost effective to use its own funds for aircraft purchases than even borrowing at such a low rate.
Ryanair to use cash to finance capital projects
Neil Sorahan, Ryanair’s chief financial officer, has stated in a recent speech that the airline will rely on its own resources this year to finance the purchase of aircraft rather than tapping the bond markets again. Although Ryanair’s 2014 bond offering rose €850 million at 1.875%, the airline currently has gross cash of €4.5 million and net cash of €350 million making it more cost effective to use its own funds for aircraft purchases than even borrowing at such a low rate.