Annual report 2006
Air Partner PLC Annual report 2006
_cover.indd   1 19/10/2006   17:52:03 25 years ago, Air Partner was a small, successful air taxi operator and aircraft charter broker based at London’s second airport, 
Gatwick. The Company had a sales turnover of £1 million, traded under the name of Air London and was an unlisted player in 
an unknown market.
In the intervening years the Company, under the Air Partner brand, has transformed itself into the only truly global aircraft charter 
provider, is listed on the London Stock Exchange, and has many of the biggest institutional shareholders owning the majority of 
its shares. In that period it has traded over £1 billion of successful contracts.
The Company’s professional advice, smart procurement and logistical expertise combine with personal recommendations to 
provide a unique capability, that is best described as ‘the global trading floor for aircraft charter’.
In selling the highest quality of air travel to the most discerning of clients, Air Partner offers value added services that make the 
difference between an ordinary flight and a highly successful operation delivering tangible results. Air Partner is proud of its 
stable and growing client base, which is serviced by its 150 highly-professional traders and logistics experts, providing global 
solutions at best value-for-money rates.
For in today’s market, it is not enough to organise a carrier to perform a described mission; traders must be supported by a 
logistics team that oversees the flight, ensuring thorough preparation with no margin for error. Critical to this is Air Partner’s 
unique 24-hour Operations Centre in the UK, and its global network of offices stretching from Europe, across the Middle East, 
to Asia, the Far East and across the Pacific to North America. Each office is manned by local teams that have the contact network 
to mate local knowledge with global expertise and support – in short a bespoke premier charter service.
Corporate statement
T H E D E S I G N P O R T F O L I O
a member of the flathill communications group plc 
www.flathillplc.com
designed & produced by
 IFC Corporate statement
 01 Highlights
 02 At a glance
 04 Chairman’s statement
 06 Chief Executive’s review
 10 Gold Air
 11 Directors and Senior Management
 12 Advisors
 13 Directors’ report
 17 Directors’ remuneration report
 20  Corporate governance statement
 23 Independent auditor’s report
 24 Consolidated income statement
 24  Consolidated statement of recognised  
income and expense
 25 Consolidated balance sheet
 26 Company balance sheet
 27 Consolidated cash flow statement
 27  Reconciliation of net cash flow  
to movement in net funds 
 28 Notes to the financial statements 
 47 Notice of Annual General Meeting
_cover.indd   2 19/10/2006   17:52:03 Highlights
Air Partner PLC Annual report 2006 01
Sales up 15% to £140.4m (£122.5m)*
Operating profit up 15% to £4.6m (£4.0m)*
Profit before tax up 16% to £5.1m (£4.4m)*
Basic EPS up 15% to 35.5p (30.6p)*
Proposed final dividend up 10% to 12.1p (11.0p)
Proposed full year core dividend up 10% to 18.2p (16.5p)
By Appointment to
Her Majesty The Queen
Supplier of Aircraft Charter
Air Partner plc
Crawley, West Sussex
Turnover (£m)
2002 2003 2004 2005 2006
140.4
122.5
100.6
114.7
100.7
UK GAAP IFRS
Profit before tax (£m)
2002 2003 2004 2005 2006
5.1
4.4
3.7
2.9
4.0
UK GAAP IFRS
Basic earning per share (pence)
2002 2003 2004 2005 2006
35.5
30.6
25.0
18.8
29.5
UK GAAP IFRS
Dividend per share (pence)
2002 2003 2004 2005 2006
18.2
15.0
13.6
36.5
16.5
19.1
12.35
UK GAAP IFRS
Special dividend
* International Financial Reporting Standard adjusted figures
_1_AIR_arf06.indd   2 20/10/2006   09:38:32 Air Partner PLC is the world’s largest corporate aircraft charter company 
with 20 offices in a dozen countries, spanning Europe, North America, 
the Middle East and Asia. The Group operates a full 24-hour flight 
operations centre providing clients with instant access to its chartered 
aircraft services year round. 
Air Partner PLC: a world player
Air Partner is a people business; over the last three decades its team 
of professionals has established and earned an enviable reputation 
for masterminding some of the most complex civil aviation operations 
flown today. New missions are launched at a moment’s notice, flying 
key movers and shakers into, and out from, the most obscure or 
challenging airports; additionally it flies tens of thousands of flights 
each year to the more traditional business and leisure destinations.
The Company was established 45 years ago and has become the 
largest retailer of high quality airliner, executive jet and freight charters 
anywhere. This year (2006), the Company employs almost 
150 aviation professionals, has a market cap of $100m and sales 
approaching $0.25bn. It will fly in excess of 40,000 flight hours.
Air Partner provides aircraft charter to industry, commerce and 
Governments – a business strategy that was proven in the 
United Kingdom 20 years ago, and in the last decade was rolled out 
across the wider business world. This is a British company taking its 
expertise into a global market, offering a “Global and Local” service.
The Company prides itself on its independence and puts its market 
leadership down to the ability of its team to personalise the service, 
whilst maintaining the highest levels of quality, professional expertise 
and independent advice. Every flight is tailormade by people who 
really understand the needs of clients and know how to deliver 
perfect flights, with attention to detail that is second to none. 
Best value-for-money is assured using its own smart procurement 
methods, guaranteeing that clients receive the finest and most suitable 
aircraft at the lowest market rates on the day.
02 Air Partner PLC Annual report 2006
At a glance
_1_AIR_arf06.indd   3 20/10/2006   09:38:38 The highest degree of specialism across all client sectors
Air Partner PLC is the market leader for Government charters, 
with 35% of Group sales deriving from this sector. It is vetted, 
authorised and used by Royal families and Governments from 
30 countries, in addition to the NGOs such as the United Nations, 
the Red Cross and the EU. Over the last decade alone, many 
thousands of contracts worth over $500m have been successfully 
completed for the Governments of a dozen Western Powers including 
six of the current G8 member states.
In recognition of service excellence, in 2004 the CEO, David Savile, 
was granted a Royal Warrant as Provider of Aircraft Charter 
to Her Majesty Queen Elizabeth II, an honour granted to no other 
aviation company. The Company is pleased to have been serving the 
Royal Household continuously since 1998.
Air Partner is, however, no elitist supplier: its services are depended on 
by a wide range of users, all of whom have the need for logistical 
excellence and first time delivery. With over 100 flights being 
despatched on average every business day, the team is equally 
accomplished at organising a business jet to fly a CEO around Europe 
or North America as it is co-ordinating 70 large passenger jets to 
move 10,000 delegates to a major product launch. Furthermore, 
outside business hours, the duty operations team has the privilege of 
arranging hundreds of life-saving air ambulance and organ transplant 
flights each year.
In addition to its dominant role in the Government and Corporate 
sectors, over the last two years the Company has made significant 
investment in the retail (HNWI) sector. In 2004 it launched 
its Jet Membership Programme, a card scheme that entitled members 
to fixed prices and guaranteed availability on quality business jets. 
This summer it has upgraded and expanded it into today’s JetCard 
product (www.thejetcard.co.uk).
The Company also operates the only integrated corporate air evacuation 
service available today. Subscription clients have priority access to a 
wide range of aircraft suitable for rescuing corporate employees from 
the world’s hotspots to points of safe haven, with procedures assured 
through intensive military-style pre-planning.
In summary, Air Partner is a world-class aircraft charter company, with 
the talent, experience and professionalism to provide the ideal aircraft 
solution for any client need. However simple or extreme that need 
may be, the Company has all the required skills and facilities to 
deliver success, and a proven operational, commercial and financial 
reputation to give users real peace of mind. 
Air Partner PLC Annual report 2006 03
“ The Company employs almost 150 aviation professionals, has a market 
cap of $100m and sales approaching $0.25bn.”
_1_AIR_arf06.indd   4 20/10/2006   09:38:38 04 Air Partner PLC Annual report 2006
Record financial results produced in 
a more normalised year of trading
Strong contribution from all products 
and areas of the Group
Twelfth consecutive year of a 10% core 
dividend increase
Focus on geographic and product 
diversity rewarded
I am pleased to report that your Company has, once again, enjoyed 
a buoyant year producing significant growth in both sales and profit. 
At the time of the interim results forward bookings were 14% ahead 
of the prior year and this positive trend continued throughout the 
second half of the financial year. Accordingly, Group sales grew by 
15% to £140.4 million (2005: £122.5 million)*, with profit before tax 
for the year ended 31 July 2006 up by 16% to £5.13 million 
(2005: £4.41 million)*. Diluted earnings per share increased by 15% 
to 34.4p (2005: 29.8p)* and the unaudited Group cash position, as 
at 30 September 2006, was £15.6 million (FY2005: £15.4 million). 
The directors have recommended payment of a final dividend of 
12.1p, making the total for the year 18.2p (2005: 16.5p, excluding 
a 20.0p special dividend) representing an increase in the core 
dividend of 10% for the twelfth consecutive year.
Air Partner’s 2005 record results benefited from one off, non-repeating 
contracts, while this year has been characterised by a more normalised 
pattern of trading and further delivery against the Group’s stated 
strategy. The announcement of back-to-back record financial results 
is a testimony to the robustness and resilience of the Group today. 
Air Partner has worked hard to diversify its revenue streams both by 
geography and product, thereby successfully positioning the Group 
to take advantage of the significant increases in air travel that have 
occurred in the last decade.
Tony Mack Chairman
Chairman’s statement
Quality Dependability
_1_AIR_arf06.indd   5 20/10/2006   09:38:41 Air Partner PLC Annual report 2006 05
The ongoing globalisation of markets in an ever-increasing time-short 
society continues to drive growth in the aviation industry, and 
particularly private charter. Consequently, the demand for Air Partner’s 
services is more diverse and broad-based than ever before. In the 
period under review 35% of turnover came from the Government 
sector and Air Partner acted for six of the G8 group of Governments. 
In addition, increasing stringent security requirements have made 
conventional airline travel more exasperating, fuelling demand for 
Air Partner’s private jet services amongst businesses, VIPs and high 
net worth individuals (“HNWI”). 
The continued HNWI population growth has led to Air Partner 
developing a new JetCard service focused on this market. The JetCard 
is designed to enable users to benefit from Air Partner’s unprecedented 
track record flying Royalty, Heads of State, Government ministers and 
high level corporate executives, by allowing them to buy private jet 
usage on a prepaid basis. The Group’s investment in JetCard has 
created a world-class Air Partner product, providing guaranteed jet 
availability, at fixed rates and with a money-back option if our clients’ 
need change. 
In line with the Group’s stated strategy to invest in the growing private 
jet market, I am delighted that the Air Partner is also announcing 
today the acquisition of a leading London-based private jet operator, 
Gold Air. A full statement on the acquisition is available on RNS, but 
the transaction is immediately earnings enhancing and provides 
Air Partner with control of the UK’s newest private jet fleet without 
owning the aircraft.
Current trading remains strong and advanced bookings are 
significantly ahead of this time last year. The Group continues to 
invest at all levels for future success and accordingly, your Board 
remains confident of Air Partner’s future success.
Tony Mack 
Chairman
11 October 2006
“ I am pleased to report that your Company has, once again, enjoyed 
a buoyant year producing significant growth in both sales and profit.”
Speed Safety
*  International Financial Reporting Standard adjusted comparatives.
_1_AIR_arf06.indd   6 20/10/2006   09:38:49 06 Air Partner PLC Annual report 2006
Continued strong growth in all forms 
of private aviation transportation
JetCard launched to capture more 
of growing HNWI market
Further strengthening of team 
and management
Post balance sheet date acquisition of 
Gold Air International Limited (“Gold Air”) 
positions the Group to take further market 
share in private jet market
It is extremely pleasing to report on yet another strong year for the 
Group. The results reinforce our belief in our corporate strategy which 
continues to deliver double-digit percentage growth in both sales and 
profit, and allows us to pay increasing dividends for our shareholders. 
It also provides us with real evidence that our investment into people, 
management and training is being rewarded. 
Although Air Partner has reported two consecutive record financial 
years, they were strikingly different in composure. 2005 was driven by 
five significant one-off contracts, but 2006 was notable for its wider 
spread of business, pleasingly derived from meaningful contributions 
across the whole Group; all of Air Partner’s established territories 
were profitable and all but two increased sales or profitability. This 
provides evidence that the Group is integrally strong and that each 
part is a net positive contributor. In addition our four start-up offices 
Japan, Italy, US West Coast, and Spain are on track for profitability in 
line with internal budgets. The successes in the period under review 
stem from a strong market, an efficient structure, advanced team 
skills, real perseverance and effective management. They are a 
testament to the Group’s focus on diversifying its earnings by 
geography, product and industry sector.
The rapid growth in the private jet charter market is driven by three 
key factors: strong Western economies, an increasingly ‘cash-rich 
time-poor’ society, and a mass air-transport network burdened by 
heightened security measures. In addition, growing personal and 
corporate wealth, dependence on low-cost carriers and fears over 
global security, have all helped push customers towards the services 
provided by Air Partner. The Group does not expect any of these 
factors to diminish in the foreseeable future.
David Savile Chief Executive
Chief Executive’s review
Attention to detail Training
_1_AIR_arf06.indd   7 20/10/2006   09:38:59 Air Partner PLC Annual report 2006 07
However, to lay the credit of these results solely at the door of the 
marketplace would be to deny the extraordinary efforts of our teams 
who, across each and every shift, have fully utilised the opportunities 
presented to them. It is through their professionalism that Air Partner 
continues to build its outstanding reputation for successful flights, 
including some of the most demanding of missions that are undertaken 
by the civilian sector today. The result is not only another record year, 
but a pointer to the Group’s potential future profitability.
The increase in sales over 2005 in logistical terms equates to almost 
5,000 additional flights, with most of this in the second half of the 
year. While this has challenged our teams, their commitment has 
been outstanding in covering additional workloads while new team 
members have been recruited and trained. Hence we continue to 
invest for growth on all fronts and I am pleased to report that in line 
with this our active client numbers have increased by 18% in the last 
twelve months. 
The Group operates in three key sectors: Government, Corporate, 
and Private (High net worth individual or “HNWI”). Air Partner is the 
leading supplier to the Government sector and this year has worked 
with six of the G8, and a further 20 smaller Governments and Heads 
of State. In addition, we remain a leading player in the corporate 
sector providing solutions to complex itineraries for some of the 
largest companies in the world. In the year under review both the 
Government and Corporate sectors have provided good levels of 
business and the teams have performed well.
Last year the Group announced that it would make significant 
investment in developing its position in the HNWI Jet-for-Leisure 
market, and our launch of The JetCard (www.JetCard.co.uk) in 
July 2006 represents a planned £2 million commitment over the next 
two years. In addition to this, on 11 October 2006 we announced the 
acquisition of Gold Air, a London-based private jet operator and 
aircraft management company, for £4.4 million. These two strategic 
moves provide us with an unrivalled base from which to profitably 
build market share in the HNWI sector and in doing so, the Group’s 
Private sector will increase its competition with fractional ownership 
schemes like US rival NetJets. NetJets was the first mover in the 
European jet card market, and should be credited with increasing the 
awareness and acceptability of private jet travel; over the last two 
years a significant number of new customers have been introduced to 
private jet travel through their prolific advertising campaigns. Today 
Air Partner has positioned itself to seek a share of this market and we 
are proud of our unique ability to offer a full range of world class, 
branded private jet services that offer Air Partner’s clients five different 
ways to access private jet use.
The full details of today’s acquisition of Gold Air are available on 
RNS. However, the earnings enhancing transaction is in line with the 
Group’s stated strategy to further invest in the private jet market and 
post the transaction, Air Partner will control the UK’s newest fleet of 
private jets, have added 150 active customers to its client base and 
further diversified its revenue streams to include private jet management 
and sales – all without owning the fleet. 
The expansion of our international office network continues to serve 
us well, providing a greater range of opportunities from which to 
develop increasing business. Having established a backbone of 
offices that spans 15,000 miles across the key business centres, we 
now have the structure for further growth. 
“ ...on 11 October 2006 we announced the acquisition of Gold Air 
International Ltd, a London-based private jet operator and aircraft 
management company.”
Presence Value
_1_AIR_arf06.indd   8 20/10/2006   09:39:05 08 Air Partner PLC Annual report 2006
Geographic review
The UK 
This has always been, and remains, the powerhouse of Group 
profitability. However the stride towards diversification of profits sees 
the UK now generating 52% (2005: 61%) of overall Group PBT. After 
an impressive 2005 performance, the UK did well to continue both 
sales growth and fee income, as it expanded its team and launched 
the JetCard scheme, causing a small drop in profitability. 
We continue to secure an increasing number of contracts, both of ad 
hoc and short-term nature and opportunities continue in abundance. 
Prior to the launch of JetCard at the year-end, our existing Jet Membership 
Programme exceeded its year target in both card sales and profitability. 
This work provides an ideal springboard for our new product.
Europe
Our French offices re-established their former impressive profitability 
track record, doubling PBT over 2005 levels on sales that increased 
35% year on year. This team is pre-eminent amongst its domestic 
competitors and their success is evidence of this.
The German team saw further sales growth and new client acquisitions, 
despite an uncertain business environment. However, profitability was 
affected due to tighter margins and a weaker contribution from its 
normally strong Austrian satellite. Since the year-end we have 
consolidated our Frankfurt operation into an expanding central office 
in Cologne, as it takes on a larger team.
This year our Italian office welcomed a new country manager, relocated 
to the heart of the business district in Milan, and has subsequently 
moved into operational profit on the back of significant additional 
business. We are confident it will be profitable by the half year. 
The Swiss office in Zurich continues profitably, albeit on reduced figures. 
Unusually for a newly-seeded office, I am pleased to report that 
Spain achieved profitability in its very first year. The immediate future 
is also positive.
The USA
Now comprising three East Coast and one West Coast office, this 
territory now provides the second largest contribution, representing 
27% of Group PBT. The US again produced an extremely impressive 
performance, matching the exceptional nature of last year. Client 
numbers increased, with over a quarter of fee income deriving from 
new clients, particularly in the entertainment sector, specifically 
targeted by our team in San Francisco.
Rest of the World
Further afield, our UAE team, based at the main airport in Dubai has 
continued to win new contracts and new clients. As a result, we invested 
in new team members and have doubled profitability from last year.
The Asian and Far Eastern offices each provide important client and 
supply functions for the main Western parts of the Group, where their 
contribution increases local earnings. We are very pleased to have 
them as key components in our global team. 
“ Having a backbone of offices that spans 15,000 miles across the key 
business centres, we now have the structure for further growth.”
Chief Executive’s review continued
_1_AIR_arf06.indd   9 20/10/2006   09:39:08 Air Partner PLC Annual report 2006 09
Our Australian leasing operation continued satisfactorily during the 
year reported, as the contract matured through its fifth of six and a 
half years. Post year-end, we realised the value of two of the four 
Metro-liners, selling them above book value and with future rental 
compensation. We have re-invested part of the funds in a 1995 Saab 
SF340B which is more than ten years younger than our previous 
average airframe age. The Saab is a more desirable aircraft with 
potentially firmer residuals; the move allows us to maintain a steady 
income flow from the stronger of our two lessees. 
Current trading and outlook
While two back-to-back record years and more progress against our 
stated aims is extremely encouraging, shareholders need to remember 
that we have built this business on ad hoc demand. The market for air 
travel continues to boom, and with it, the need for exclusive air travel. 
Chartering your own aircraft remains the consistent answer for clients 
who prefer to be in control of air travel for either their goods or 
themselves. For private jet users, you decide who travels, be it your 
family or your business colleagues, so there are no unfamiliar faces 
on board and hence no security risk. You stipulate when and where 
you go, and in what degree of style, space and comfort. 
The strong performance of our private jet business is underpinned by 
the solid foundations of the commercial aircraft division which 
continues to perform ahead of expectations. In today’s climate of 
high security and longer delays, the Group provides an ideal  
alternative solution to scheduled air travel, at an affordable and high 
quality level. We therefore believe that our business has a strong and 
increasingly profitable future. Within the medium term, there will 
always be the risk of cyclicality as economies vary around the world. 
However the progress made in recent years to diversify our earnings 
streams leaves us less exposed to cyclical downturns than ever before. 
The reality of our business is that our clients reserve aircraft at short 
notice. Today is no different, and it can be a mistake to read too much 
into forward bookings; that said, our current forwards are considerably 
in excess of the comparable situation last year, reinforcing our view 
that the market remains strong, and providing cause for further 
encouragement. Having for the first time achieved profits in excess of 
£5 million, we hope that this will provide a new benchmark for the 
Group to maintain and exceed going forward. 
David Savile
Chief Executive 
11 October 2006
“ Having for the first time achieved profits in excess of £5 million, we 
hope that this will provide a new benchmark for the Group to maintain 
and exceed going forward.”
_1_AIR_arf06.indd   10 20/10/2006   09:39:10 Gold Air
10 Air Partner PLC Annual report 2006
The Acquisition of Gold Air International Limited
On 11 October 2006 Air Partner acquired 100% of Gold Air 
International Ltd for £4.4m.
London-based Gold Air is one of the UK’s top private jet operators and 
aircraft management companies. The acquisition provides the Group 
with its own licensed aircraft operator that hosts a fleet of Lear 45s and 
Hawker 800, and with orders for two Global 5000 long-range jets, 
due in 2009. The fleet is the youngest and highest quality aircraft in 
the UK charter fleet, with five of the six Lears delivered new from the 
factory in the last year, the most recent being in October 2006. 
All aircraft are managed for third-party owners. When the Global 5000 
fleet arrive Air Partner will be hosting the latest aircraft in the UK 
long-haul large, mid-size, and small jet markets.
Hence Air Partner gains control of six new best-in-class charter aircraft 
from today. Control provides Air Partner with: 
● Guaranteed capacity for Air Partner’s current ad hoc charter clients; 
● Guaranteed capacity for Air Partner’s JetCard clients; and 
●  A new shop front for Air Partner’s private jet division, in that it is 
now an end operator of jets as well as the world’s largest corporate 
charter broker. 
 
The acquisition also widens our product range; we will now offer five 
different ways of using a private jet. They are:
●  ad hoc charters booked as needed, according to the length of 
the trip, with no commitment going forward;
●  JetCard 25-hours use, prepaid, at a fixed competitive rate with 
guaranteed availability;
●  contract hire the ability to buy 100 or more hours on our new Lear 
45 fleet, at preferential rates. Guaranteed availability on one specific 
type, flown by an elite pool of professional pilots; in essence, it’s like 
having your own private jet, but without any capital cost;
●  private jet management for those that already own a private jet, 
or have one on order, we offer a full turnkey operation to maximise 
your investment; and
●  private jet sales we have a team of aircraft professionals who 
will walk you through all aspects of ownership and work alongside 
you to strike the most suitable purchase deal for your own needs. 
Together, these activities make Air Partner a full service provider, 
global one-stop shop for executive and VIP air transport, for ad hoc 
users, contract customers and owners.
_1_AIR_arf06.indd   11 20/10/2006   09:39:20 Air Partner PLC Annual report 2006 11
Directors and Senior Management 
Anthony Mack 
Executive Chairman, Aged 57
Joining his father’s business in 1970, 
he became Managing Director in 1979. 
Appointed as Executive Chairman in 1985, 
he was responsible for floating the business 
on the USM in 1989, and achieving a full 
listing on the Stock Market in 1995.*
David Savile 
Chief Executive, Aged 47
Has over 25 years’ experience in aircraft 
charter, 23 of which are with the Company. 
He joined in 1983, was appointed to the 
Board in 1987 in charge of day-to-day 
operations, and assumed his current role with 
full responsibility for the whole Group in 1997.
Richard Everitt 
Non-executive director, Aged 57
Qualified as a solicitor in 1974 and after 
four years in private practice joined BAA. 
Following its privatisation, he joined the 
Board with responsibility for strategy and 
regulatory matters. In 2001 he became 
Chief Executive of National Air Traffic 
Services on its part privatisation. 
In December 2004, he joined the Port 
of London Authority as Chief Executive.*
Stephanie White MBA 
Finance Director, Aged 43
Joined the Company in 1983 with previous 
experience at National Westminster Bank. 
Stephanie became Finance Controller in 
1994, and Finance Director in 1997. Steph 
has an MBA gained from Brighton University 
in 2001.
Sir Srikanthan MBA, ACMA 
Non-executive director, Aged 55
Sri is a Senior Lecturer in Finance and 
Accounting at Cranfield University. He is 
currently acting as a consultant to a wide range 
of companies and is also a non-executive 
director of an engineering services company.*
Justin Barber
Director
David Macdonald
Director
Philip Mathews
Director (& USA)
Gilles Meynard
France
Birte Kipke
Germany & Austria
Kevin Ducksbury
Italy, Spain & Switzerland
Roula Rabbat
UAE
Simon King
Finance, London
Directors
Senior Group Management
UK Board
Principal Country Managers
Mark Briffa
Chief Operating Officer, Aged 42
Having worked for Air Partner for over 
ten years, in February 2006, Mark was 
appointed Chief Operating Officer with 
responsibility for all Group trading activities. 
He has over 17 years’ experience in the 
aviation industry, and brings a wealth of 
trading and personnel talent to the Board.
*  Members of the Audit and Remuneration Committees.
_1_AIR_arf06.indd   12 20/10/2006   09:39:32 12 Air Partner PLC Annual report 2006
Advisors
Secretary and registered ofﬁce
Stephanie White
Platinum House 
Gatwick Road 
Crawley 
West Sussex RH10 9RP
Registered number
980675
Stockbrokers
Oriel Securities Limited
125 Wood Street 
London EC2V 7AN
Auditor
Baker Tilly
Chartered Accountants and Registered Auditor 
12 Gleneagles Court  
Brighton Road  
Crawley 
West Sussex RH10 6AD
Solicitors
Travers Smith
10 Snow Hill 
London EC1A 2AL
Principal bankers
NatWest Bank PLC
16 The Boulevard 
Crawley 
West Sussex RH10 1XU
Registrars
Capita IRG Plc
The Registry 
34 Beckenham Road 
Beckenham 
Kent BR3 4TU
_0_AIR_arb06.indd   1 20/10/2006   09:39:53 Air Partner PLC Annual report 2006 13
Directors’ report
The directors present their report and the audited ﬁnancial statements for the year ended 31 July 2006.
Principal activity and business review
The principal activity of the Group during the year continued to be that of air charter brokers hiring aircraft for charter to its customers. 
The Chairman’s statement on pages 4 to 5 and the Chief Executive’s review set out on pages 6 to 9 gives an assessment of the business, 
including a list of the principal risks and uncertainties facing the Group. The Chief Executive’s review also includes details of expected 
future developments in the business of the Group.
Results and dividends 
The results for the year are set out in the income statement and show a proﬁt, after taxation and minority interests, of £3,429,000 
(2005: £2,904,000 restated under International Financial Reporting Standards. Under UK Generally Accepted Accounting Practice this 
ﬁgure was £3,142,000).
An interim dividend of 6.1 pence (2005: 5.5 pence) per share was paid on 19 May 2006. Subject to shareholders’ approval, the directors 
recommend the payment of a ﬁnal dividend of 12.1 pence (2005: 31.0 pence of which 20.0 pence related to a special dividend) per share 
that will be paid 1 December 2006 to shareholders on the register at 3 November 2006, making a total dividend for the year 
of 18.2 pence (2005: 36.5 pence) per share. The shares will be marked ex-dividend on 1 November 2006.
Directors and their interests
The directors who held ofﬁce during the year had the following beneﬁcial interests in the shares of the Company at the beginning 
(or date of appointment if later) and the end of the ﬁnancial year:
a) Ordinary shares of 5 pence each fully paid up.
    31 July 2006 1 August 2005
A G Mack*†     1,761,567 1,761,567
D C W Savile     124,153 124,153
S J White     93,205 93,205
M A Briffa     — —
S Srikanthan*†     — —
R Everitt*†     — —
* Member of the Remuneration Committee.
† Member of the Audit Committee.
b) No director has a non-beneﬁcial interest in the shares of the Company.
c) Details of share options granted to the directors are disclosed on page 19.
d)  None of the directors has any direct or indirect interest in any contract or arrangement subsisting at the date of these ﬁnancial 
statements which is signiﬁcant in relation to the business of the Group and which has not otherwise been disclosed.
e)  A G Mack & S J White retire by rotation in accordance with the Company’s Articles of Association and, both being eligible, 
will offer themselves for re-election at the Annual General Meeting. 
f)  M A Briffa was appointed to the Board on 1 February 2006 and in accordance with the Company’s Articles of Association will offer 
himself for election at the Annual General Meeting.
g)  The Company has made qualifying third-party indemnity provisions for the beneﬁt of its directors which were made during the 
year and remain in force at the date of this report.
Substantial shareholdings
Apart from the interest of A G Mack, the directors are aware of the following interests of 3% or more as at 1 October 2006.
Shareholder:    Number of shares % held
Framlington Investment Management Ltd    1,602,500 16.58%
Schroder Investments Ltd    1,075,000 11.12%
Hermes Investment Management Ltd    940,525 9.73%
Deutsche Bank    450,000 4.66%
F&C Asset Management    447,666 4.63%
Dresdner Bank    335,000 3.47%
Going concern 
The directors are satisﬁed that the Group has adequate resources to continue in business for the foreseeable future. For this reason, the Board 
continues to adopt the going concern basis for the preparation of accounts.
_0_AIR_arb06.indd   2 20/10/2006   09:39:53 14 Air Partner PLC Annual report 2006
Charitable and political contributions
The Group made charitable contributions totalling £5,558 (2005: £15,781), principally to local charities serving the communities 
in which the Group operates. No political donations were made in the current or prior period.
Policy on payment of creditors
The Group has not adopted any formal code of payment practice with regard to the settlement of amounts due to its suppliers. It is the 
Group’s policy to negotiate the terms of payments with suppliers when agreeing the terms of each contract or transaction, to ensure that 
the suppliers are aware of the agreed terms of payment, and to adhere to the agreed terms.
At 31 July 2006, the Company had an average of 14 days (2005: 15 days) and the Group 23 days (2005: 19 days), purchases 
outstanding in Trade Creditors.
Financial instruments
There are detailed disclosures on the Group’s treasury policy and key ﬁnancial risks in note 15 to the accounts on page 36.
Risks and uncertainties
The key risk to the Group is that, operating in an ad hoc industry, forward visibility to turnover and earnings is extremely hard to gauge 
with accuracy. Client needs for our service also vary from year to year, and therefore, in the short term, can mean earnings ﬂuctuations. 
Working capital
The directors feel that the current levels of cash held within the business are commensurate with the management of the trading account. 
It should be borne in mind that there are wide peaks and troughs within each quarter, caused by differing client and supplier payment terms.
Annual General Meeting
The Annual General Meeting of the Company is to be held at 10am on 22 November 2006 at Platinum House, Gatwick Road, Crawley, 
West Sussex RH10 9RP . The notice for this meeting is set out at the end of this document.
Resolution 8 to be proposed at the Annual General Meeting asks shareholders to grant the directors authority under Section 80 of the 
Companies Act 1985 (the “Act”) to allot shares up to a maximum aggregate nominal value of £193,560.72, being approximately 40.05% 
of the nominal issued ordinary share capital of the Company as at 11 October (being one third of the ordinary share capital in issue and 
the amount of ordinary share capital reserved for the issue of shares upon the exercise of share options which, subject to the approval of 
resolution 10 below will be a lesser amount than the authorised but unissued share capital of the Company. Such amount is the maximum 
permitted amount under the best practice Corporate Governance guidelines). The authority will expire at the end of ﬁve years from the date of 
the passing of the resolution. The directors have no present intention of exercising such authority. Subject to the approval of resolution 10 referred 
to below, the resolution replaces a similar resolution passed at the Annual General Meeting of the Company held on 23 November 2005.
If the directors wish to allot unissued shares or other equity securities for cash or sell any shares which the Company holds in treasury following 
a purchase of its own shares pursuant to the authority in resolution 11 below, the Act requires that such shares or other equity securities are 
offered ﬁrst to existing shareholders in proportion to their existing holding. 
Resolution 9 asks shareholders to grant the directors authority to allot equity securities or sell treasury shares for cash up to an aggregate 
nominal value of £24,163.80 (being 5% of the Company’s issued ordinary share capital as at 11 October 2006) without ﬁrst offering the 
securities to existing shareholders. The resolution also disapplies the statutory pre-emption provisions in connection with a rights issue and 
allows the directors, in the case of a rights issue, to make appropriate arrangements in relation to fractional entitlements or other legal or 
practical problems which might arise. The authority will expire at the end of ﬁve years from the date of the passing of the resolution. 
Subject to the approval of resolution 10 referred to below, the resolution replaces a similar resolution passed at the Annual General 
Meeting of the Company held on 23 November 2005. 
Resolution 10 to be proposed at the Annual General Meeting asks shareholders to approve an increase in the authorised share capital 
of the Company from £575,000 to £750,000. The proposed increase represents an increase of 30.4% to the current authorised share 
capital. The current nominal value of the issued share capital is £483,275.90 being approximately 84% of the authorised share capital. 
The principal reason for the proposed increase is to enlarge this headroom to give the directors ﬂexibility to issue additional shares in the 
future if the directors consider this appropriate.
Directors’ report continued
_0_AIR_arb06.indd   3 20/10/2006   09:39:53 Air Partner PLC Annual report 2006 15
Annual General Meeting (continued)
Resolution 11 to be proposed at the Annual General Meeting seeks authority from holders of ordinary shares of 5 pence each in the capital 
of the Company (“ordinary shares”) for the Company to make market purchases of its own ordinary shares, such authority being limited 
to the purchase of 10% of the issued ordinary share capital, being 966,552 ordinary shares. The maximum price payable for the purchase 
by the Company of its own ordinary shares will be limited to 5% above the average of the middle market quotations of the Company’s 
ordinary shares, as derived from the Daily Ofﬁcial List of the London Stock Exchange, for the ﬁve business days prior to the purchase. 
The minimum price payable by the Company for the purchase of its own ordinary shares will be 5 pence per share (being the amount 
equal to the nominal value of an ordinary share). The authority to purchase the Company’s own ordinary shares will only be exercised if 
the directors consider that there is likely to be a beneﬁcial impact on earnings per ordinary share and that it is in the best interests of the 
Company at the time. 
Options to subscribe for up to 649,375 ordinary shares have been granted and are outstanding as at 11 October 2006 (being the latest 
practicable date prior to the posting of this document) representing 6.72% of the issued ordinary share capital at that date. If the directors 
were to exercise in full the power for which they are seeking authority under resolution 11, the options outstanding as at 11 October 2006 
would represent 7.46% of the ordinary share capital in issue following such exercise.
Resolution 12 to be proposed at the Annual General Meeting seeks shareholder approval for the increase to the ‘overall dilution limit’ 
contained in Rule 4 of the Air Partner PLC Company Share Option Plan 2003 (the “CSOP”) from 10% to 15%. The dilution limit relates to 
the number of ordinary shares which may be issued under any share option scheme or share scheme operated by the Company (a “relevant 
scheme”). The limit is expressed as a percentage of ordinary shares in issue immediately before any proposed grant of new options and 
takes into account the number of new shares issued or issuable pursuant to options/awards granted under relevant schemes in the ten years 
to the proposed date of grant.
Equal opportunities
The Group has a policy of offering equal opportunities to employees at all levels in respect of job applicants and conditions of work. 
The Group adopts a policy of non-discrimination in the employment of disabled persons, and in the event of individuals becoming 
disabled whilst in the employment of the Group, it would arrange appropriate training in order to facilitate their continued employment. 
Statement of directors’ responsibilities in relation to ﬁnancial statements
The directors are responsible for preparing the Annual Report and the ﬁnancial statements. The directors are required to prepare ﬁnancial 
statements for the Group in accordance with International Financial Reporting Standards (“IFRS”) as adopted for use in the European Union 
and have also elected to prepare ﬁnancial statements for the Company in accordance with IFRS. Company law requires the directors to prepare 
such ﬁnancial statements in accordance with IFRS, the Companies Act 1985 and Article 4 of the IAS Regulation.
International Accounting Standard 1 requires that ﬁnancial statements present fairly for each ﬁnancial year the Company’s ﬁnancial 
position, ﬁnancial performance and cash ﬂows. This requires the fair presentation of the effects of transactions, other events and 
conditions in accordance with the deﬁnitions and recognition criteria for assets, liabilities, income and expenses set out in the International 
Accounting Standards Board’s “Framework for the Preparation and Presentation of Financial Statements”. In virtually all circumstances, a fair 
presentation will be achieved by compliance with all applicable International Financial Reporting Standards. Directors are also required to:
●  properly select and apply accounting policies;
●  present information, including accounting policies, in a manner that provides relevant, reliable, comparable and understandable 
information; and
●  provide additional disclosures when compliance with speciﬁc requirements in IFRS is insufﬁcient to enable users to understand 
the impact of particular transactions, other events and conditions on the entity’s ﬁnancial position and ﬁnancial performance.
The directors are responsible for keeping proper accounting records which disclose with reasonable accuracy at any time the ﬁnancial 
position of the Company, for safeguarding the assets, for taking reasonable steps for the prevention and detection of fraud and other 
irregularities and for the preparation of a Directors’ report and Directors’ remuneration report which comply with the requirements 
of the Companies Act 1985.
The directors are responsible for the maintenance and integrity of the Company website. Legislation in the United Kingdom governing 
the preparation and dissemination of the ﬁnancial statements may differ from legislation in other jurisdictions. 
_0_AIR_arb06.indd   4 20/10/2006   09:39:53 16 Air Partner PLC Annual report 2006
Directors’ statement as to the disclosure of information to auditors
Each director serving at the date of approval of the ﬁnancial statements conﬁrms that:
●  to the best of their knowledge and belief, there is no information relevant to the preparation of their report of which the Company’s 
auditors are unaware; and
●  each director has taken all the steps a director might reasonably be expected to have taken to be aware of relevant audit information 
and to establish that the Company’s auditors are aware of that information.
Employee involvement
The directors appreciate the importance of promoting and maintaining good communication with the Group’s employees and its policy to 
keep employees regularly informed on matters relating to their employment and business strategy. This is managed by quarterly newsletters, 
special technical advisor visits, circulars and team brieﬁngs.
Over the past year our investment in employee training has increased. The Group recognises the importance of development of all team members 
in securing the future of the business, and it is developing new initiatives to provide advice, support and training to enhance this function. 
Auditor
In accordance with Section 385 of the Companies Act 1985, a resolution for the re-appointment of Baker Tilly as auditor of the Company 
will be proposed at the Annual General Meeting.
Post balance sheet events
On the 11 October Air Partner announced the acquisition of the entire issued share capital in Gold Air International Limited (“Gold Air”) 
from Shed Group Limited (“Shed”), a subsidiary of Gold Group Limited (“Gold Group”). 
The purchase price is cash £4.4m based on a cash-free, debt-free basis, satisﬁed with existing cash resources. Under the terms of the 
transaction Air Partner will discharge Gold Air’s current £3m debt with National Westminster Bank, and pay £1.4m to Shed. There will 
also be an additional payment to the extent that Gold Air’s net assets at 30 September 2006 exceed £600,000, excluding bank debt.
The net asset position is to be determined by the parties drawing up and agreeing completion accounts immediately following completion. 
It is likely that Air Partner will have to make an additional payment of £940,000 and this sum is to be placed into a joint escrow account 
at completion pending settlement of the completion accounts.
S J White
Company Secretary
11 October 2006
Directors’ report continued
_0_AIR_arb06.indd   5 20/10/2006   09:39:54 Air Partner PLC Annual report 2006 17
Information not subject to audit
Membership of the Remuneration Committee is set out on page 11. It is responsible for determining, on behalf of the Board, the salary 
and beneﬁts packages of the Chairman and executive directors. The Board as a whole determines the salary and beneﬁts paid to the 
other executive directors of the subsidiary undertakings.
An evaluation of the performance of the Board and its individual members was undertaken during the year with the assistance of Independent 
Remuneration Solutions Ltd. As part of the process, each director was interviewed and these ﬁndings were presented to the Chairman of the 
Remuneration Committee for discussion. The recommendations of the report were debated and generally adopted by the Board.
Travers Smith, the Company’s solicitors, provides advice in relation to any legal matters and share options rules.
Remuneration policy 
Air Partner is a service business whose success in any given market conditions is ultimately dependent on the quality and performance of 
its people. The remuneration policy is consequently geared towards attracting and retaining the best people. The Remuneration Committee aims 
to ensure that overall remuneration is above average when compared with companies of a similar size and complexity. As well as external 
comparison, each executive director’s remuneration is determined by reference to individual competence and both individual and corporate 
performance in any given year with an emphasis of remuneration to be substantially performance related.
The package consists of basic salary, share options, performance related bonuses and pensions. Other beneﬁts include private health for 
themselves and families, life cover and reimbursement of home telephone expenses. 
Individual components of remuneration:
Basic salary and beneﬁts
This is intended to reﬂect the individual responsibility, performance and experience of each director. The Remuneration Committee has 
determined that salaries will rise by an average of 8.1% in 2006/07 for the executive directors, which reﬂects the recommendations 
agreed from the review by Independent Remuneration Solutions Ltd.
Personal performance bonus
Each executive director (excluding the Chairman) is entitled to performance related pay up to a maximum of 10% of salary for achieving 
speciﬁc non-ﬁnancial targets based on the medium-term strategy of the business. These targets were fully achieved in the current year. 
Proﬁt related bonus
The bonus is based on a target which is set at the beginning of the year and which is intended to reﬂect a level of proﬁtability that is 
equivalent to a reasonable return on shareholder funds. Bonuses paid to each director reﬂect individual areas of responsibility and the 
achievement of the target. No director can be paid more than 100% of their salary in bonuses in any one year. Any bonus amount over 
100% is accumulated and paid in the following year.
Pensions
Under the terms of their service contracts, D C W Savile, M A Briffa and S J White are eligible for contributions to personal pension schemes 
of their choice. The Company does not have any ﬁnal salary pension schemes in place. 
Share options
Share options are awarded to executives and other senior individuals at the Remuneration Committee’s discretion. The aggregate exercise 
price for all outstanding options awarded during a ten-year period may not exceed four times the individual’s relevant emoluments. There 
is only one scheme open to directors at the current time, which was approved in 2003. This scheme does not have any performance criteria. 
Grants are awarded under both ‘approved’ and ‘unapproved’ parts of the plan according to current Inland Revenue rules. All outstanding options 
will lapse upon cessation of employment.
The Board proposes to increase the existing share option scheme, details of which are included in the Directors’ report.
Service contracts
The executive directors have service contracts which contain a twelve-month termination and notice clause. In the event of early termination 
of the contracts, each director is entitled to compensation equal to their basic salary and contractual beneﬁts for the notice period.
The policy on termination payments is that the Company does not normally make payments beyond its contractual obligations. However, 
in exceptional circumstances, an additional ex-gratia payment may be considered based on factors including the director’s past contribution 
and the circumstances of the director’s departure.
Non-executive directors
The non-executive directors’ appointments, fees and beneﬁts are made and determined by the Chairman and the two executive directors. 
Each non-executive director holds a letter of appointment. For R Everitt this is dated October 2004 and for S Srikanthan July 2000, and 
includes a rolling three-month notice clause. 
Directors’ remuneration report
_0_AIR_arb06.indd   6 20/10/2006   09:39:54 18 Air Partner PLC Annual report 2006
Information not subject to audit (continued)
Performance graph
The graph below shows the change in the total shareholder return for each of the last ﬁve ﬁnancial years compared with the 
FTSE All Share index. 
FTSE All Share was selected as it represents the broadest equity market index in which the Company is a constituent member.
Information subject to audit
Directors’ emoluments
Details of directors’ emoluments and compensation received during the year are set out below:
     Performance     
     related  Pension 2006 2005 
    Salary/fees bonus Beneﬁts contributions Total Total 
    £ £ £ £ £ £
Executive directors:
A G Mack    71,541 22,908 17,946 — 112,395 136,810
D C W Savile    190,000 131,520 2,235 22,800 346,555 256,715
S J White    135,000 104,347 2,680 16,200 258,227 192,186
M A Briffa (appointed 1 February 2006)    40,000 27,912 411 2,000 70,323 N/A
Non-executive directors:      
S Srikanthan    23,055 — — — 23,055 19,470
R Everitt    20,055 — — — 20,055 11,358
    479,651 286,687 23,272 41,000 830,610 616,539
There were also gains on the exercise of share options of £147,000 for each of D C W Savile and S J White in 2005.
Directors’ remuneration report continued
_0_AIR_arb06.indd   7 20/10/2006   09:39:54 Air Partner PLC Annual report 2006 19
Share options
Aggregate emoluments disclosed above do not include any amounts for the value of options to subscribe for ordinary shares in 
the Company granted to or held by directors. Details of the options held at the beginning and the end of the year are as follows:
 Number of options
  31 July    31 July Exercise Earliest date  
 Notes 2005 Granted Exercised Lapsed 2006 price of exercise Expiry date
D C W Savile a) 40,000 — — — 40,000 295.00p 6 August 2006 6 August 2013 
 b) 10,000 — — — 10,000 387.50p 31 July 2007 31 July 2014
  50,000 — — — 50,000   
S J White a) 40,000 — — — 40,000 295.00p 6 August 2006 6 August 2013
 b) 10,000 — — — 10,000 387.50p 31 July 2007  31 July 2014
  50,000 — — — 50,000   
M A Briffa a) 75,000 — — — 75,000 295.00p 6 August 2006 6 August 2013
 b) 10,000 — — — 10,000 387.50p 31 July 2007  31 July 2014
  85,000 — — — 85,000
A G Mack  — — — — — N/A N/A N/A
  — — — — —   
S Srikanthan  — — — — — N/A N/A N/A
  — — — — —   
R Everitt   — — — — — N/A N/A N/A
  — — — — —   
The options are exercisable as follows:
a & b) These options have no performance criteria.
The market price of the shares at 31 July 2006 was 650 pence (31 July 2005: 597 pence) and ranged between 578 pence and 720 pence 
during the year. The average share price during the year was 648 pence.
On behalf of the Board
S Srikanthan
Chairman of the Remuneration Committee
11 October 2006
_0_AIR_arb06.indd   8 20/10/2006   09:39:54 20 Air Partner PLC Annual report 2006
The Company is committed to the principles of good corporate governance. The Listing Rules of the Financial Services Authority require listed 
companies to disclose how they comply with the principles and provisions contained in the 2003 Combined Code on Corporate Governance 
(“the Code”). This report explains how the directors seek to apply the requirements of the Code to procedures within the Group.
Compliance with the Combined Code
For the ﬁnancial year ended 31 July 2006 and in the period up to the date of approval of this report, the Board considers it has complied 
with the aspects of the Code except as follows:
a)  The Audit Committee does not consist exclusively of independent non-executive directors as envisaged by the Code as A G Mack 
is a member of the Committee (C.3.1).
b) The non-executive directors have rolling three-month contracts rather than contracts for a ﬁxed term as envisaged by the Code (A.7.2).
c)  The Remuneration Committee which met four times during the year does not consist exclusively of independent non-executive directors 
as envisaged by the Code as A G Mack is a member of the Committee (B.2.1).
d)  Although the Company has clear procedures and controls in place there is no formal framework laid down for the manner in which the 
Board reviews the effectiveness of these internal controls. No formal review is carried out on an annual basis, although the Board keeps 
such controls under ongoing review. This covers all controls including ﬁnancial, operational and compliance controls in addition to risk 
management systems (C.2.1).
e) There is also no annual review on the potential implementation of an internal audit function (C.3.5).
f)  No formal Nomination Committee has been set up by the Board; all matters regarding the appointment of non-executive directors are 
made by the Board as a whole. Independent consultants are used to source potential candidates. In view of the size of the Company 
the Board considers it appropriate to undertake this function as a whole (A.4.6).
g)  Performance evaluation of the Board, its Committees and the individual directors is ongoing on a month to month basis and is not 
formally recorded or minuted (A.6.1).
h)  The Audit Committee does not have formal written terms of reference (C.3.2), which are therefore not available (C.3.3) nor are there 
formal arrangements in place whereby staff may raise concerns in conﬁdence (C.3.4). This also applies to the Remuneration Committee 
(B.2.1). These are currently under review.
Due to the size and operating structure of the Company at the present time, the above exceptions are not considered materially important 
to the Company’s short-term business performance. As the Company develops, speciﬁc areas of non-compliance will be reviewed.
Applying the principles of the Code
Board constitution and effectiveness
The Board currently comprises of four executive and two non-executive directors, including the Chairman who is responsible for running 
the Board and remains fully committed to this role. Thus the non-executive directors make up at least one third of the membership 
of the Board. It is the Board’s opinion, given the size of the Group, that the current composition of the Board fulﬁls the requirements 
of the Combined Code, such that no individual or group of individuals can dominate the Board’s decision making.
The roles of the Chairman and Chief Executive are split. The Chairman is A G Mack, the Chief Executive is D C W Savile and the 
senior independent non-executive director is S Srikanthan.
Both of the non-executive directors are considered to be independent of management and free from any business or other relationship 
which could materially affect their independent judgement.
The Board carries the ultimate responsibility for the conduct of the Group’s business. It meets on a monthly basis, excepting a summer 
and a Christmas break, and more frequently if required. It receives regular and ad hoc presentations to ensure it has timely information 
needed to discharge its duties.
During the year the Board met on twelve occasions. A G Mack and S Srikanthan were absent for one meeting each.
Executive directors periodically visit Air Partner ofﬁces throughout the world where they are briefed on various aspects of the Group’s 
operations and unique market characteristics.
All directors are required to be submitted for re-election at least every three years, with at least one third of the Board needed to stand 
at any one AGM.
Remuneration policy for individual executive packages is disclosed in the Directors’ remuneration report.
Corporate governance statement 
_0_AIR_arb06.indd   9 20/10/2006   09:39:55 Air Partner PLC Annual report 2006 21
Board responsibilities
The Board acknowledges the division of responsibilities for running the Board and managing the Company’s business. A summary 
of the respective roles and responsibilities follows.
The Chairman is expected to:
●  ensure the Board follows and reviews a strategy which will deliver sustained increasing shareholder value;
●  lead the Board, creating the right environment for the overall Board and individual effectiveness, both inside and outside the boardroom;
●  ensure new directors have the appropriate induction to the requirements of the Board;
●  lead the Board, by monitoring and challenging all aspects of operational performance; and
●  ensure the Group follows good corporate governance practice.
The Chief Executive is expected to:
●  set, communicate and implement Group strategy throughout all the business units;
● provide effective Group leadership; 
●  take responsibility for the day-to-day management of the Group in line with the agreed strategy and parameters set by the Board;
●  deliver results according to the agreed targets and budgets;
●  ensure appropriate levels of management and resources are in place in order to achieve such targets; and
●  ensure in conjunction with the Finance Director, effective communication with its shareholders, customers, employees and 
other stakeholders.
Communication with shareholders
The Board has developed a comprehensive programme to ensure that effective communication by both executive and non-executive 
directors with shareholders, analysts and the ﬁnancial press is maintained throughout the year. This is achieved through its Annual and 
Interim Reports, results and other announcements, as well as through presentations to institutional shareholders. In addition, the Group 
publishes its statutory accounts and various Group policies on its website and has developed this site in an effort to communicate more 
readily with a wider audience of shareholders. The Board seeks to present its strategy and performance in an objective and balanced manner.
The Board uses the Annual General Meeting to communicate with both private and institutional investors and welcomes their participation. 
The Chairman of the Remuneration Committee will be available at the Annual General Meeting to answer any questions that might arise.
Details of the resolutions to be proposed at the Annual General Meeting can be found within the Notice of meeting on pages 47 to 48. 
In accordance with the Combined Code the votes cast by proxy will again be declared at the meeting after the votes have been cast.
The Board and its committees
The directors have access to the Company Secretary, S J White, who is responsible to the Board for ensuring that Board procedures are 
followed and that applicable rules and regulations are complied with. The Company Secretary, whose appointment or removal is a matter 
for the Board as a whole, if requested to do so by individual directors, facilitates the provision of independent professional advice at 
the Company’s expense. The Board meets regularly throughout the year, with a formal schedule of matters speciﬁcally reserved to it for 
decision. These include strategy plans, the approval of ﬁnancial statements, major non-recurring projects, business risk assessment and 
new initiatives. The Board receives appropriate and timely information in order to enable it to properly discharge its duties. The day-to-day 
running of the Company is delegated to D C W Savile, S J White, M A Briffa and the Senior Management team.
Audit Committee report
The Audit Committee met twice during the year under the chairmanship of S Srikanthan along with R Everitt as a non-executive director 
and A G Mack, who represents the shareholders by virtue of his 18.23% shareholding. All members attended both meetings. Although 
not members, the external auditor and the Finance Director were invited to attend these meeting, allowing the Finance Director to leave 
at the end of the each meeting in order for the committee to have private discussions with the auditor.
The content and scope of the external audits are agreed in advance of any audit and any matters arising from the Auditor’s report 
are discussed prior to the approval of the ﬁnancial statements being signed off. The Audit Committee reviews and monitors the Group’s 
internal ﬁnancial controls, whilst the Board itself monitors and reviews all internal controls, systems and procedures along with risk 
management assessments.
_0_AIR_arb06.indd   10 20/10/2006   09:39:55 22 Air Partner PLC Annual report 2006
Audit Committee report (continued)
The Audit Committee meets with the external auditors twice each year to review historic numbers and any future changes that will affect 
the business going forward. Baker Tilly are the current principal auditors and liaise with the Audit Committee regarding the current 
details of work undertaken for the Group. A distinction is made between audit and non-audit business so as to ensure the auditor 
retains objectivity and independence.
The Audit Committee judges the external auditors’ independence and the effectiveness of the audit process, taking into consideration 
relevant UK regulatory requirements. The Committee is required to report its ﬁnding to the Board, making any necessary recommendations 
for action or improvements.
Remuneration Committee report
The Group has constituted a Remuneration Committee under the Chairmanship of S Srikanthan to provide recommendations to the Board 
on the framework for executive director remuneration. The other members of the Committee are R Everitt and A G Mack. The Remuneration 
Committee met twice in the year with all members in attendance. The Remuneration Committee’s report is given in full on pages 17 to 19.
Internal control
The full Board is responsible for the Group’s system of internal control and for reviewing its effectiveness. In establishing this system, the directors 
have considered the nature of the Group’s business, with regard to the risks to which that particular business is exposed, the likelihood 
of such risks occurring and the costs of protecting against them.
However, such a system is designed to manage rather than eliminate the risk of failure to achieve business objectives, and can only provide 
reasonable, and not absolute, assurance. Currently the Board feels that a formal internal audit function is not required given the other 
controls in place. The key procedures currently in place are as follows:
●  detailed and comprehensive budgeting systems, with a full operating forecast for twelve months and a longer term, ﬁve year ﬁnancial 
plan, both formally approved by the Board;
● business performance reports are circulated on a daily basis for sales bookings, with full results being produced monthly;
● quarterly divisional reports are also formally submitted for the Board to review; 
● clearly deﬁned authority limits and controls are in place over contract signing limits, purchasing commitments and capital expenditure; 
●  complex treasury instruments are not used in the normal course of business, any speciﬁc projects that may involve such instruments are 
put to the Board; and
● the directors conﬁrm that they keep the effectiveness of the system of internal control under review.
Corporate governance statement continued
_0_AIR_arb06.indd   11 20/10/2006   09:39:55 Air Partner PLC Annual report 2006 23
We have audited the Group and parent company ﬁnancial statements on pages 24 to 46. We have also audited the information in the 
Directors’ remuneration report that is described as having been audited. This report is made solely to the Company’s members, as a body, 
in accordance with Section 235 of the Companies Act 1985. Our audit work has been undertaken so that we might state to the Company’s 
members those matters we are required to state to them in an Auditor’s report and for no other purpose. To the fullest extent permitted by 
law, we do not accept or assume responsibility to anyone other than the Company and the Company’s members as a body, for our audit 
work, for this report, or for the opinions we have formed.
Respective responsibilities of directors and auditors
The directors’ responsibilities for preparing the Annual Report, the Directors’ remuneration report and the ﬁnancial statements in accordance 
with applicable law and International Financial Reporting Standards (IFRSs) as adopted by the European Union are set out in the Statement 
of directors’ responsibilities in relation to the ﬁnancial statements on page 15. Our responsibility is to audit the ﬁnancial statements and 
the part of the Directors’ remuneration report to be audited in accordance with relevant legal and regulatory requirements and International 
Standards on Auditing (UK and Ireland). 
We report to you our opinion as to whether the ﬁnancial statements give a true and fair view and whether the ﬁnancial statements and the 
part of the Directors’ remuneration report to be audited have been properly prepared in accordance with the Companies Act 1985 and, 
as regards the Group ﬁnancial statements, Article 4 of the IAS Regulation. We also report to you whether in our opinion the information given in 
the Directors’ report is consistent with the ﬁnancial statements. In addition we report to you if, in our opinion, the Company has not kept proper 
accounting records, if we have not received all the information and explanations we require for our audit, or if information speciﬁed by law 
regarding directors’ remuneration and other transactions is not disclosed.
We review whether the Corporate governance statement reﬂects the Company’s compliance with the nine provisions of the 2003 
Combined Code speciﬁed for our review by the Listing Rules of the Financial Services Authority, and we report if it does not. We are not 
required to consider whether the Board’s statements on internal control cover all risks and controls, or form an opinion on the effectiveness 
of the Group’s corporate governance procedures or its risk and control procedures. We read other information contained in the Annual 
Report and consider whether it is consistent with the audited ﬁnancial statements. The other information comprises only the Chairman’s 
statement, the Chief Executive’s review, the Directors’ report, the unaudited part of the Directors’ remuneration report and the Corporate 
governance statement. We consider the implications for our report if we become aware of any apparent misstatements or material 
inconsistencies with the ﬁnancial statements. Our responsibilities do not extend to any other information.
Basis of audit opinion
We conducted our audit in accordance with International Standards on Auditing (UK and Ireland) issued by the Auditing Practices Board. 
An audit includes examination, on a test basis, of evidence relevant to the amounts and disclosures in the ﬁnancial statements and the 
part of the Directors’ remuneration report to be audited. It also includes an assessment of the signiﬁcant estimates and judgements made 
by the directors in the preparation of the ﬁnancial statements, and of whether the accounting policies are appropriate to the Group’s and 
Company’s circumstances, consistently applied and adequately disclosed.
We planned and performed our audit so as to obtain all the information and explanations which we considered necessary in order to provide 
us with sufﬁcient evidence to give reasonable assurance that the ﬁnancial statements and the part of the Directors’ remuneration report 
to be audited are free from material misstatement, whether caused by fraud or other irregularity or error. In forming our opinion we also 
evaluated the overall adequacy of the presentation of information in the ﬁnancial statements and the part of the Directors’ remuneration 
report to be audited.
Opinion
In our opinion:
●  the Group ﬁnancial statements give a true and fair view, in accordance with IFRSs as adopted by the European Union, of the state 
of the Group’s affairs as at 31 July 2006 and of its proﬁt for the year then ended;
●  the parent company ﬁnancial statements give a true and fair view, in accordance with IFRSs as adopted by the European Union as 
applied in accordance with the provisions of the Companies Act 1985, of the state of the parent company’s affairs as at 31 July 2006;
●  the ﬁnancial statements and the part of the Directors’ remuneration report to be audited have been properly prepared in accordance 
with the Companies Act 1985 and as regards to the Group ﬁnancial statements, Article 4 of the IAS Regulation; and
● the information given in the Directors’ report is consistent with the ﬁnancial statements. 
BAKER TILLY 
Registered Auditor, Chartered Accountants
Crawley
23 October 2006
Independent auditor’s report
to the members of Air Partner PLC
_0_AIR_arb06.indd   12 20/10/2006   09:39:55 24 Air Partner PLC Annual report 2006
    2006 2005 
Continuing operations   Note £’000 £’000
Revenue   2 140,368 122,521
Cost of sales    (124,819) (108,283)
Gross proﬁt    15,549 14,238
Administrative expenses    (10,948) (10,263)
Operating proﬁt    4,601 3,975
Finance income   5 534 468
Finance costs   5 (6) (29)
Proﬁt before tax    5,129 4,414
Taxation   6 (1,537) (1,427)
Proﬁt for the period    3,592 2,987
Attributable to:   
Equity holders of the parent    3,429 2,904
Minority interests    163 83
    3,592 2,987
Earnings per share:     
Basic   8 35.5p 30.6p
Diluted   8 34.4p 29.8p
Consolidated statement of  
recognised income and expense
for the year ended 31 July 2006
    2006 2005 
    £’000 £’000
Exchange differences on translation of foreign operations   (271) 135
Net (expense)/income recognised directly in equity   (271) 135
Proﬁt for the period    3,592 2,987
Total recognised income and expense for the period    3,321 3,122
Attributable to:  
Equity holders of the parent    3,158 3,039
Minority interests    163 83
    3,321 3,122
Consolidated income statement
for the year ended 31 July 2006
_0_AIR_arb06.indd   13 20/10/2006   09:39:55 Air Partner PLC Annual report 2006 25
    2006 2005 
   Note £’000 £’000
Assets   
Non-current assets   
Property, plant and equipment   9 425 2,373
Deferred tax assets   17 315 228
    740 2,601
Current assets   
Trade and other receivables   12 23,613 11,691
Cash and cash equivalents   14 11,931 15,437
    35,544 27,128
Non-current assets held for sale   25 1,582 —
Total assets     37,866 29,729
Current liabilities   
Trade and other payables   13 (8,618) (6,048)
Current tax liabilities    (796) (521)
Bank overdrafts and loans   14 — (343)
Other creditors    (15,129) (9,165)
    (24,543) (16,077)
Net current assets    11,001 11,051
Non-current liabilities   
Trade and other payables   13 (110) (111)
Deferred tax liabilities   17 (76) (134)
    (186) (245)
Total liabilities    (24,729) (16,322)
Net assets    13,137 13,407
Equity   
Share capital   19 & 20 483 483
Share premium account   20 2,581 2,581
Hedging reserve   20 (28) 9
Translation reserve   20 (114) 157
Share option reserve   20 496 300
Retained earnings   20 9,545 9,702
Equity attributable to equity holders of the parent  20 12,963 13,232
Minority equity interest    174 175
Total equity    13,137 13,407
These ﬁnancial statements were approved and authorised for issue by the Board on 11 October 2006 and are signed on its behalf by:
S J White A G Mack
Director Director 
Consolidated balance sheet
as at 31 July 2006
_0_AIR_arb06.indd   14 20/10/2006   09:39:56 26 Air Partner PLC Annual report 2006
    2006 2005 
   Note £’000 £’000
Assets   
Non-current assets   
Property, plant and equipment   9 275 275
Deferred tax assets   17 274 213
Investments   10 310 1,002
    859 1,490
Current assets   
Trade and other receivables   12 10,517 3,321
Cash and cash equivalents   14 5,512 10,708
    16,029 14,029
Non-current assets held for sale   25 692 —
Total assets     17,580 15,519
Current liabilities   
Trade and other payables   13 (2,553) (2,250)
Current tax liabilities    (517) (373)
Bank overdrafts and loans   14 — (343)
Other creditors    (5,195) (2,131)
    (8,265) (5,097)
Net current assets    7,764 8,932
Net assets    9,315 10,422
Equity   
Share capital   19 & 20 483 483
Share premium account   20 2,581 2,581
Hedging reserve   20 (28) 9
Share option reserve   20 496 300
Retained earnings   20 5,783 7,049
Total equity    9,315 10,422
These ﬁnancial statements were approved and authorised for issue by the Board on 11 October 2006 and are signed on its behalf by:
S J White A G Mack
Director Director
Company balance sheet
as at 31 July 2006
_0_AIR_arb06.indd   15 20/10/2006   09:39:57 Air Partner PLC Annual report 2006 27
    2006 2005 
   Note £’000 £’000
Net cash from operating activities   21 154 5,937
Investing activities   
Interest received    534 468
Proceeds on disposal of property, plant and equipment   32 1
Investments    — (69)
Purchases of property, plant and equipment    (208) (294)
Net cash from investing activities    358 106
Financing activities
Dividends paid    (3,586) (1,602)
Decrease in bank loans    (343) (323)
Proceeds on issue of shares    — 1,317
Net cash used in ﬁnancing activities    (3,929) (608)
Net (decrease)/increase in cash and cash equivalents   (3,417) 5,435
Opening cash and cash equivalents    15,437 9,983
Effect of foreign exchange rate changes    (89) 19
Closing cash and cash equivalents    11,931 15,437
Reconciliation of net cash ﬂow  
to movement in net funds
for the year ended 31 July 2006
    2006 2005 
   Note £’000 £’000
(Decrease)/increase in cash and cash equivalents in the year   (3,417) 5,435
Cash outﬂow from movement in debt ﬁnancing   343 323
Effect of foreign exchange rate changes    (89) 4
Movement in net funds during the period    (3,163) 5,762
Opening net funds    15,094 9,332
Closing net funds   22 11,931 15,094
Consolidated cash ﬂow statement
for the year ended 31 July 2006
_0_AIR_arb06.indd   16 20/10/2006   09:39:57 28 Air Partner PLC Annual report 2006
1 Accounting policies 
a) Basis of preparation of ﬁnancial statements
The ﬁnancial statements have been prepared in accordance with International Financial Reporting Standards (“IFRS”), including 
International Accounting Standards (“IAS”), interpretations (“IFRIC”) issued by the International Accounting Standards Board (“IASB”) 
for the ﬁrst time. The disclosures required by IFRS 1 concerning the transition from UK GAAP to IFRS are given in note 26 on page 42.  
The last ﬁnancial statements prepared under UK GAAP were for the year ended 31 July 2005 and the date of transition to IFRS was 
therefore 1 August 2004.
The ﬁnancial statements are presented in Sterling and, unless otherwise stated, rounded to the nearest thousand. They are prepared on the 
historical cost basis, except for the revaluation of certain ﬁnancial instruments which are stated at fair value.
At the date of authorisation of these ﬁnancial statements the following Standards and Interpretations which have not been applied in these 
ﬁnancial statements were in issue but not yet effective: 
IAS 21   Amendment – Net investment in a Foreign Operation
IAS 39   Amendment – Fair Value Option
IFRS 6   Exploration for and Evaluation of Mineral Resources
IFRS 7   Financial Instruments: Disclosures; and the related amendment to IAS 1 on Capital Disclosures
IFRIC 4   Determining whether an Arrangement contains a Lease
IFRIC 5   Rights to Interest Arising from Decommissioning, Restoration and Environmental Rehabilitation Funds
IFRIC 6   Liabilities arising from Participating in a Speciﬁc Marker – Waste Electrical and Electronic Equipment
IFRIC 7   Applying the Restatement Approach under IAS 29 Financial Reporting in Hyperinﬂationary Economies
IFRIC 8   Scope of IFRS 2 Share-based Payment
IFRIC 9   Reassessment of Embedded Derivatives
IFRIC 10  Interim Financial Reporting and Impairment 
The directors anticipate that the adoption of these Standards and Interpretations in future periods will have no material impact on the 
ﬁnancial statements of the Group when the relevant Standards and Interpretations come into effect.
b) Basis of consolidation
The consolidated ﬁnancial statements include the results of the Company and its subsidiary undertakings, all of which have been made 
up to 31 July 2006.
i) Subsidiaries
  Subsidiaries are entities controlled by the Company. Control exists when the Company has the power, directly or indirectly, to govern 
the ﬁnancial and operating policies of an entity so as to obtain beneﬁts from its activities. In assessing control, potential voting rights 
that presently are exercisable or convertible are taken into account.
ii) Transactions eliminated on consolidation
  Intra-group balances, and any unrealised gains and losses or income and expenses arising from intra-group transactions are eliminated 
in preparing the consolidated ﬁnancial statements.
c) Foreign currency
i) Foreign currency transactions
  Transactions in foreign currencies are translated at the foreign exchange rate prevailing at the time of the translation. Monetary assets 
and liabilities denominated in foreign currencies at the balance sheet date are translated to Sterling at the foreign exchange rate 
ruling at that date. Foreign exchange differences arising on translation are recognised in the income statement. Non-monetary assets 
and liabilities that are measured in terms of historical cost in a foreign currency are translated using the exchange rate at the date of 
the transaction.
ii) Financial statements of foreign operations
  The assets and liabilities of overseas foreign operations are translated at exchange rates prevailing at the balance sheet date. Income 
and expenses are translated at the average rate for the period. Exchange differences arising are classiﬁed as equity and transferred to the 
Group’s translation reserve. The Group has taken advantage of the exemption conferred by IFRS 1 not to fully retrospectively apply IAS 21.
Notes to the ﬁnancial statements
for the year ended 31 July 2006
_0_AIR_arb06.indd   17 20/10/2006   09:39:57 Air Partner PLC Annual report 2006 29
1 Accounting policies (continued)
d) Property, plant and equipment
Items of property, plant and equipment are stated at cost less accumulated depreciation and impairment losses. 
Depreciation is charged to the income statement by instalments over the estimated useful lives as follows:
Short leasehold property – over the life of the lease 
Leasehold improvements – over the life of the lease 
Plant and equipment – 17–33% per annum on a straight-line basis 
Motor vehicles – 25% per annum on a reducing balance basis 
Aircraft – 10% per annum on a straight-line basis
e) Revenue
Revenue is measured from the fair value of the consideration received for the provision of goods and services to third-party customers and 
is stated exclusive of Value Added Tax. In respect of the Group’s principal activities (being that of air charter brokers hiring aircraft for charter 
to its customers) and the provision of travel agency services the full contract value is realised as revenue when the economic beneﬁts are 
deemed to have passed to the customer. Income from aircraft leasing is recognised on a straight-line basis over the term of the relevant lease.
f) Share-based payments
The Group has applied the requirements of IFRS 2 share-based payments. In accordance with the transitional provisions, IFRS 2 has 
been applied to all grants of equity instruments after 7 November 2002 that were unvested as of 1 August 2005. The Group will from 
time to time offer employees the chance to acquire shares of the Company. The fair value of options granted is recognised as an employee 
expense with a corresponding increase in equity. The fair value is measured at grant date and spread over the period during which the 
employee becomes unconditionally entitled to the options. The fair value of the options granted is measured using the Black Scholes model.
g) Taxation
The tax expense represents current and deferred tax. Income tax is recognised in the income statement except to the extent that it relates to 
items recognised directly in equity, in which case it is recognised in equity.
Current tax is the expected tax payable on the taxable income for the year, using tax rates enacted or substantially enacted at the balance 
sheet date, and any adjustments to the tax payable in respect of previous years.
Deferred tax is the tax expected to be payable or recoverable on differences between the carrying amount of assets and liabilities in the 
ﬁnancial statements and the corresponding tax bases used in the computation of taxable proﬁt and is accounted for using the balance sheet 
liability method. Deferred tax liabilities are recognised for all temporary differences and deferred tax assets are recognised to the extent that it is 
probable that taxable proﬁts will be available against which deductible temporary differences can be utilised.
Deferred tax is calculated at the tax rates that are expected to apply to the period when the asset is realised or the liability is settled.
h) Leasing
Leases are classiﬁed as ﬁnance leases whenever the terms of the lease transfer substantially all the risks and rewards of ownership 
to the lessee. All other leases are classiﬁed as operating leases. Rental income or expenditure from operating leases is recognised 
on a straight-line basis over the lease term.
i)  Cash and cash equivalents
Cash and cash equivalents comprise cash balances and call deposits with an original maturity of three months or less. 
The carrying amount of these assets approximates their fair value.
j) Derivative ﬁnancial instruments
From time to time the Group uses derivative ﬁnancial instruments to hedge certain exposure to foreign exchange risk from trading 
activities. From 1 August 2004, such derivative ﬁnancial instruments are initially recognised at fair value on the date on which a derivative 
contract is entered into and subsequently measured at fair value at each balance sheet date. Any assets or liabilities recognised on the 
balance sheet date are taken via the proﬁt and loss account to a hedging reserve in equity.
k) Provisions
Provisions are recognised when the Group has a present obligation as a result of a past event, and it is probable that the Group will be 
required to settle that obligation. Provisions are measured at the directors’ best estimate of the expenditure required to settle the obligation 
at the balance sheet date, and are discounted to present value where the effect is material.
The fair value of forward currency contracts is calculated by reference to the current forward exchange rates for contracts with similar 
maturity proﬁles.
No ﬁnancial instruments have been designated as fair value or cash-ﬂow hedges, consequently they have not been accounted for as such.
_0_AIR_arb06.indd   18 20/10/2006   09:39:57 30 Air Partner PLC Annual report 2006
1 Accounting policies (continued)
l) Retirement beneﬁt costs
Payments to deﬁned contribution retirement beneﬁt schemes are charged as an expense as they fall due. Payments made to state-managed 
retirement beneﬁt schemes are dealt with as payments to deﬁned contribution schemes where the Group’s obligations under the schemes 
are equivalent to those arising in a deﬁned contribution retirement beneﬁt scheme.
m) Non-current assets held for sale
Non-current assets classiﬁed as held for sale are measured at the lower of carrying amount and fair value less costs to sell.
Non-current assets are classiﬁed as held for sale if their carrying amount will be recovered through a sale transaction rather than through 
continuing use. This condition is regarded as met only when the sale is highly probable and the asset is available for immediate sale in its 
present condition. Management must be committed to the sale which should be expected to qualify for recognition as a completed sale 
within one year from the date of classiﬁcation.
2 Segmental analysis
Segmental information is presented in respect of the Group’s geographical and business markets. The primary format, geographical 
segments, is based on the Group’s management and internal reporting structure and is organised in four areas: United Kingdom, Europe, 
United States of America and the Rest of the World.
The following table provides analysis between each geographical market:
 United   United States  Rest of 
 Kingdom Europe of America  the World Consolidated 
2006 £’000  £’000  £’000  £’000 £’000
Revenue 66,427 48,147 21,734 4,060 140,368
Segment operating proﬁt 2,197 608 1,365 431 4,601
Finance income — — — — 534
Finance costs — — — — (6)
Proﬁt before tax — — — — 5,129
Taxation — — — — (1,537)
Proﬁt for the period — — — — 3,592
Segment assets 13,813 17,301 3,271 3,481 37,866
Segment liabilities 6,294 16,344 1,267 824 24,729
Depreciation 73 59 6 307 445
Capital expenditure 102 45 2 59 208
 United    United States  Rest of 
 Kingdom Europe of America  the World Consolidated 
2005 £’000  £’000  £’000  £’000 £’000
Revenue 61,213 36,184 22,127 2,997 122,521
Segment operating proﬁt 2,246 473 1,194 62 3,975
Finance income — — — — 468
Finance costs — — — — (29)
Proﬁt before tax — — — — 4,414
Taxation — — — — (1,427)
Proﬁt for the period — — — — 2,987
Segment assets 13,608 10,472 2,312 3,337 29,729
Segment liabilities 4,515 9,593 1,075 1,139 16,322
Depreciation 104 67 11 314 496
Capital expenditure 225 56 6 7 294
Notes to the ﬁnancial statements continued
for the year ended 31 July 2006
_0_AIR_arb06.indd   19 20/10/2006   09:39:57 Air Partner PLC Annual report 2006 31
2 Segmental analysis (continued)
    2006 2005 
Business segment – revenue    £’000 £’000
Air charter    138,724 120,718
Aircraft leasing    534 523
Travel agency    1,108 1,266
Insurance    2 14
    140,368 122,521
Business segment – operating proﬁt
Air charter    4,336 3,972
Aircraft leasing    232 (34)
Travel agency    30 30
Insurance    3 7
    4,601 3,975
Finance income    534 468
Finance costs    (6) (29)
Proﬁt before tax    5,129 4,414
Taxation    (1,537) (1,427)
Proﬁt for the period    3,592 2,987
3 Proﬁt from operations 
Proﬁt for the year has been arrived at after charging/(crediting) the following:
    2006  2005 
    £’000 £’000
Net foreign exchange (gain)/loss    (82) 51
Depreciation of property, plant and equipment   445 496
Operating lease rentals – land and buildings   353 335
Staff costs (see note 4)    7,513 6,136
Auditors’ remuneration:
Group    146 133
Company    68 55
Included in the above are fees to the principal auditor and its network ﬁrms, disclosed below:
Group – audit fees – statutory audit   89 60
 – tax services – compliance services   8 8
 – other services – advisory services   28 8
_0_AIR_arb06.indd   20 20/10/2006   09:39:58 32 Air Partner PLC Annual report 2006
4 Directors and employees
The average number of people employed by the Group and Company (including directors) during the year, analysed by category was as follows:
    2006 2005 
    Number Number
Operations    104 97
Administration    36 27
    140 124
    2006 2005 
    £’000 £’000
The aggregate payroll costs comprised:  
Wages and salaries    6,260 5,227
Social security costs    1,099 781
Other pension costs    154 128
    7,513 6,136
The Company contributes to personal pension plans of certain employees and this cost is charged to the proﬁt and loss account in the year 
in which it is incurred.
Full disclosure of directors’ emoluments, share options and directors’ pension entitlements which form part of their remuneration packages, 
and their interests in the Company’s share capital are disclosed in the Directors’ report on pages 13 to 16 and the Directors’ remuneration 
report on pages 17 to 19.
5 Finance income and costs 
    2006 2005 
Finance income    £’000 £’000
Interest on bank deposits    534 468
    2006 2005 
Finance costs    £’000 £’000
Interest on bank overdrafts and loans    6 29
6 Tax
    2006 2005 
    £’000 £’000
Current income tax:
UK corporation tax    785 871
Foreign tax    897 736
Current income tax charge    1,682 1,607
Deferred tax (see note 17)    (145) (180)
    1,537 1,427
Corporation tax is calculated at 30% (2005: 30%) of the estimated assessable proﬁt for the year.
Taxation for other jurisdictions is calculated at the rates prevailing in the respective jurisdictions.
Notes to the ﬁnancial statements continued
for the year ended 31 July 2006
_0_AIR_arb06.indd   21 20/10/2006   09:39:58 Air Partner PLC Annual report 2006 33
6 Tax (continued)
The charge for the year can be reconciled to the proﬁt per the income statement as follows:
  2006 2006 2005 2005 
  £’000 % £’000 %
Proﬁt on ordinary activities before tax  5,129 — 4,414 —
Tax at the UK corporation tax rate of 30% (2005: 30%) 1,539 100% 1,324 93%
Tax effect of expenses that are not deductible in  
determining taxable proﬁt  206 13% 174 12%
Tax effect of different tax rates of subsidiaries operating  
in other jurisdictions  142 9% 168 12%
Tax effect of capital allowances in excess of depreciation (39) (2%) (15) (1%)
Tax effect of other allowable deductions  (58) (4%) (161) (11%)
Tax effect of other timing differences  (123) (8%) (75) (6%)
Tax effect of movement of tax payable  (10) — (5) —
Tax effect of prior year adjustments  (120) (8%) 17 1%
  1,537 100% 1,427 100%
7 Dividends 
    2006 2005 
    £’000 £’000
Amounts recognised as distributions to equity holders in the period  
Final dividend for year ended 31 July 2005 of 11 pence (2004: 10 pence) per share  1,063 931
Special dividend for year ended 31 July 2005 of 20 pence (2004: N/A) per share  1,933 —
Interim dividend for year ended 31 July 2006 of 6.1 pence (2005: 5.5 pence) per share  590 547
    3,586 1,478
Proposed ﬁnal dividend for the year ended 31 July 2006 of 12.1 pence 
(2005: 31 pence including special) per share    1,170 2,996
The proposed ﬁnal dividend is subject to approval by shareholders at the Annual General Meeting and has not been included as a liability 
in these ﬁnancial statements.
8 Earnings per share 
The calculation of the basic and diluted earnings per share is based on the following data:
    2006 2005 
    £’000 £’000
Earnings  
Earnings for the purposes of basic earnings per share being  
net proﬁt attributable to equity holders of the parent   3,429 2,904
Earnings for the purposes of diluted earnings per share   3,429 2,904
Number of shares  
Weighted average number of ordinary shares for the purposes  
of basic earnings per share    9,665,518 9,495,237
Effect of dilutive potential ordinary shares: share options   314,851 250,285
Weighted average number of ordinary shares for the purposes of diluted earnings per share  9,980,369 9,745,522
_0_AIR_arb06.indd   22 20/10/2006   09:39:58 34 Air Partner PLC Annual report 2006
9 Property, plant and equipment 
 Short leasehold       
 property and leasehold   Fixtures and Motor  
 improvements Aircraft equipment vehicles Total 
Group £’000 £’000 £’000 £’000 £’000
Cost     
At 1 August 2004 376 3,143 1,120 149 4,788
Exchange adjustments — 141 8 1 150
Additions 82 — 191 21 294
Disposals — — (98) (6) (104)
At 31 July 2005  458 3,284 1,221 165 5,128
Exchange adjustments — (167) (9) — (176)
Additions 22 52 89 45 208
Transfer to assets for sale — (3,169) — — (3,169)
Disposals — — (19) (103) (122)
At 31 July 2006 480 — 1,282 107 1,869
Depreciation     
At 1 August 2004 376 956 831 79 2,242
Exchange adjustments — 101 2 1 104
Charge for the year 1 313 173 23 510
Disposals — — (95) (6) (101)
At 31 July 2005 377 1,370 911 97 2,755
Exchange adjustments — (76) (9) — (85)
Charge for the year 16 293 118 18 445
Transfer to assets for sale — (1,587) — — (1,587)
Disposals — — (16) (68) (84)
At 31 July 2006 393 — 1,004 47 1,444
Net book values     
At 31 July 2006 87 — 278 60 425
At 31 July 2005 81 1,914 310 68 2,373
  Short leasehold  Fixtures and Motor 
  property  equipment  vehicles Total 
Company  £’000 £’000 £’000 £’000
Cost    
At 1 August 2004  376 527 89 992
Additions  82 137 13 232
Disposals  — (35) — (35)
At 31 July 2005  458 629 102 1,189
Additions  22 62 26 110
Disposals  — — (74) (74)
At 31 July 2006  480 691 54 1,225
Depreciation    
At 1 August 2004  376 407 46 829
Charge for the year  1 105 12 118
Disposals  — (33) — (33)
At 31 July 2005  377 479 58 914
Charge for the year  16 63 9 88
Disposals  — (2) (50) (52)
At 31 July 2006  393 540 17 950
Net book values    
At 31 July 2006  87 151 37 275
At 31 July 2005  81 150 44 275
Notes to the ﬁnancial statements continued
for the year ended 31 July 2006
_0_AIR_arb06.indd   23 20/10/2006   09:39:58 Air Partner PLC Annual report 2006 35
10 Investments 
     Total 
Company     £’000
Shares in subsidiary undertakings at cost at 1 August 2004 and at 1 August 2005   1,002
Transfer of investment to assets for resale     (692)
Shares in subsidiary undertakings at cost at 31 July 2006    310
The following is a list of the principal trading subsidiaries of which Air Partner PLC is the beneﬁcial owner of the whole, or such lesser 
percentage as is stated of the issued share capital.
Name   Principal activity Country of incorporation Holding
Air Partner International SAS   Air charter broking France 55%
Air Partner International GmbH   Air charter broking Germany 100%
Air Partner Inc   Air charter broking US 100%
Air Partner Switzerland AG   Air charter broking Switzerland 100%
Air Partner Travel Consultants Limited   Travel agency England and Wales 100%
Air Partner Srl   Air charter broking Italy 100%
Air Partner Leasing Pty Limited   Aircraft leasing Australia 100%
In the opinion of the directors the investments in the Company’s subsidiary undertakings are worth at least the amount at which they are 
stated in the balance sheet.
11 Proﬁt for the ﬁnancial year
The Group accounts do not include a separate income statement for Air Partner PLC (the parent undertaking) as permitted by Section 230 
of the Companies Act 1985. The parent company proﬁt after tax for the ﬁnancial year is £2,320,000 (2005: £1,901,000) including 
dividends from subsidiary companies of £283,000 (2005: £93,500).
12 Trade and other receivables
 Group  Company
  2006 2005 2006 2005 
  £’000 £’000 £’000 £’000
Trade receivables  18,579 9,338 7,543 2,522
Amounts owed by Group undertakings  — — 1,024 459
Other receivables  114 187 45 47
Prepayments and accrued income  4,920 2,166 1,905 293
  23,613 11,691 10,517 3,321
The directors consider that the carrying amount of trade and other receivables approximates their fair value. 
13 Trade and other payables
 Group  Company
  2006 2005 2006 2005 
  £’000 £’000 £’000 £’000
Amounts falling due within one year:    
Trade payables  7,870 5,769 2,315 2,156
Other taxation and social security payable  748 279 238 94
  8,618 6,048 2,553 2,250
Amounts falling due after one year:
Trade payables  110 111 — —
  110 111 — —
The directors consider that the carrying amount of trade and other payables approximates their fair value. 
_0_AIR_arb06.indd   24 20/10/2006   09:39:58 36 Air Partner PLC Annual report 2006
14 Bank overdrafts and loans
 Group  Company
  2006 2005 2006 2005 
  £’000 £’000 £’000 £’000
Bank loans  — 343 — 343
The above loan, which was paid off in its entirety during the year, was a US Dollar bank loan with an interest ﬁxed at six month US LIBOR. 
Weighted average rate for the period was 4.45% (2005: 4.42%).
15 Financial instruments
The objectives of the Group’s treasury activities are to manage ﬁnancial risk, minimise adverse effects of ﬂuctuations in the ﬁnancial markets 
on the value of the Group’s ﬁnancial assets and liabilities and to ensure that the working capital requirements ﬁt the needs of ongoing business.
The Group has various ﬁnancial instruments such as cash, trade receivables and trade payables that arise directly from its operations, along 
with forward currency contracts undertaken to minimise risk on future business.
a) Interest rate risk
The Group’s policy is to manage interest rate risk and to maximise its return from its cash balances. Certain cash balances are deposits 
on ﬁxed interest terms, but are never lodged for more than three months to ensure that the Group does not suffer unduly from the risk of 
interest rate variation.
b) Credit risk
The Group’s credit risk is primarily attributable to its trade receivables. The amounts presented in the balance sheet are net of allowance 
for doubtful receivables. The Group has no signiﬁcant concentration of credit risk, with exposure spread over a large number of customers.
The credit risk on liquid funds and derivative ﬁnancial instruments is limited because the counter parties are banks with high credit ratings 
assigned by international credit rating agencies. 
c) Liquidity risk
The Group aims to mitigate liquidity risk by managing cash within its operations and ensuring that cash collection is efﬁciently managed. 
Any excess cash is placed on low-risk, short-term interest-bearing deposits.
d) Price risk
The Group’s exposure to changing market prices on the value of ﬁnancial instruments has an impact on the carrying value of ﬁnancial 
assets or liabilities at fair value through proﬁt and loss.
e) Foreign currency risk
The Group has invested in foreign operations outside the United Kingdom and also buys and sells good and services denominated in 
currencies other than Sterling. As a result the value of the Group’s non-Sterling revenue, purchases, ﬁnancial assets and liabilities and 
cash ﬂows can be affected by movements in exchange rates in general and in US Dollar and Euro rates in particular. The Group’s policy 
on foreign currency risk is not to enter into forward contracts for buys/sells until a ﬁrm contract has been signed.
The Group considers using derivatives where appropriate to hedge its exposure to ﬂuctuations in foreign exchange rates. The purpose is to 
manage the currency risks arising from the Group operations. It is the Group’s policy that no trading in ﬁnancial instruments will be undertaken.
f) Forward contracts
The Group utilises currency derivatives to hedge signiﬁcant future transactions and cash ﬂows. The Group is a party to foreign currency 
forward contracts in the management of its exchange rate exposures. The instruments purchased are primarily denominated in the 
currencies of the Group’s principal markets. These derivatives are classiﬁed as trading instruments and are therefore not accounted 
for under hedge accounting. 
Derivatives that do not qualify for hedge accounting are accounted for as trading instruments and any change in their fair value 
is recognised in the income statement.
At the balance sheet date, total notional amount of outstanding forward foreign exchange contracts that the Group has committed are as below:
    2006 2005 
    £’000 £’000
Forward foreign exchange contracts    5,237 878
Changes in the fair value of non-hedging currency derivatives amounting to £37,505 have been credited in the year (2005: charge of £8,992).
Notes to the ﬁnancial statements continued
for the year ended 31 July 2006
_0_AIR_arb06.indd   25 20/10/2006   09:39:58 Air Partner PLC Annual report 2006 37
16 Share-based payments 
The Company has a share option scheme that entitles certain senior staff of the Group to shares in the Company. Options are exercisable at the 
price equal to the average quoted market price of the Company’s shares on the date of the grant. The vesting period is three years. If the options 
remain unexercised after a period of ten years from the date of grant, the options expire. Options are forfeited if the employee leaves the Group 
before the options vest.
Additionally, there was one outstanding share option scheme and one fully exercised scheme (in 2005) that were granted before 
7 November 2002 and therefore the recognition and measurement principles in IFRS 2 have not been applied to these grants in 
accordance with the transitional provisions in IFRS 1 and IFRS 2.
Details of the share options outstanding during the year are as follows: 
 2006  2005
  Number of  Weighted average Number of Weighted average 
  share  exercise price  share   exercise price  
   options (pence) options (pence)
Outstanding at beginning of the period  649,375 333.8 1,000,000 348.6
Granted during the period  — — — —
Forfeited during the period  — — — —
Exercised during the period  — — (350,625) 375.9
Outstanding at the end of the period   649,375 333.8 649,375 333.8
Exercisable at the end of the period   4,375 215.0 4,375 215.0
The weighted average remaining contractual life of share options outstanding at the year end is 0.94 years. The range of exercise prices 
of outstanding share options at the year end was between 215.0 pence to 403.0 pence (2005: 215.0 pence to 403.0 pence). 
Weighted average market price for prior year on the exercise of options was 498.5 pence.
The fair value received in return for share options granted are measured by reference to the fair value of the share options granted. 
The estimate of fair value of the services received is measured based on the Black Scholes model. The contractual life of the option 
(ten years) is used as an input into this model. No allowance is made for early leavers.
The inputs into the Black Scholes model are as follows: 
    30 July  5 August 
    2004  2003
Weighted average share price (pence)    391.7 296.1
Weighted average exercise price (pence)    391.7 296.1
Expected volatility     29.57% 40.19%
Option life    Ten years Ten years
Risk-free interest rate      4.32% 3.06%
Expected dividends    3.51% 4.61%
The share option awards are granted under a service condition, there are no performance or market conditions associated with the share options.
Expected volatility was determined by calculating the historical volatility of the Group’s share price over the previous 52 weeks. 
The total charge for the year relating to employee share-based payment plans was £196,184 (2005: £300,433), all of which related 
to equity share-based payment transactions. 
_0_AIR_arb06.indd   26 20/10/2006   09:39:59 38 Air Partner PLC Annual report 2006
17 Deferred tax 
The following are the major deferred tax liabilities and assets recognised by the Group and movements thereon during the current and prior 
reporting period.
    Share-based    
 Accelerated tax  payment  Hedging  
 depreciation Tax losses adjustment adjustment Total 
Group £’000 £’000 £’000 £’000 £’000
At 1 August 2004 (65) — — — (65)
Credit to income 87 — 90 3 180
Exchange differences (21) — — — (21)
At 1 August 2005 1 — 90 3 94
Credit to income 63 26 59 (12) 136
Exchange differences 9 — — — 9
At 31 July 2006 73 26 149 (9) 239
    Share-based  
  Accelerated tax payment  Hedging  
  depreciation adjustment adjustment Total 
Company  £’000 £’000 £’000 £’000
At 1 August 2004  120 — — 120
Credit to income  — 90 3 93
At 1 August 2005  120 90 3 213
Credit to income  14 59 (12) 61
At 31 July 2006  134 149 (9) 274
The following is the analysis of the deferred tax balances for ﬁnancial reporting purposes:
 Group  Company
  2006 2005 2006 2005 
  £’000 £’000 £’000 £’000
Deferred tax liabilities   (76) (134) — —
Deferred tax assets  315 228 274 213
  239 94 274 213
At the balance sheet date, the Group has unused tax losses of £96,000 (2005: £nil) available for offset against future proﬁts. A deferred 
tax asset has been recognised in respect of £26,000 (2005: £nil) of such losses incurred in Italy on the grounds that expected proﬁts will 
be sufﬁcient in 2006/2007 for those losses to be utilised.
Deferred tax assets have been recognised in respect of other temporary differences giving rise to deferred tax assets only where the directors 
are of the opinion that it is probable that these assets will be recovered.
No liability has been recognised in respect of temporary differences associated with undistributed earnings of subsidiaries, because it is not 
practical to do so.
18 Employee beneﬁts
In the UK the Company operates a deﬁned contribution retirement beneﬁt scheme for all qualifying employees. The assets of the scheme 
are held in individual personal pension schemes which are fully transferable if the employee leaves the Company.
Similar schemes operate across the rest of the Group depending on local regulations, and individual’s social contribution levels. 
Notes to the ﬁnancial statements continued
for the year ended 31 July 2006
_0_AIR_arb06.indd   27 20/10/2006   09:39:59 Air Partner PLC Annual report 2006 39
19 Share capital 
    2006 2005 
    £’000 £’000
Authorised:  
11,500,000 ordinary shares of 5.0 pence each    575 575
Issued and fully paid:  
9,665,518 ordinary shares of 5.0 pence each   483 483
The Company has one class of ordinary shares which carry no right to ﬁxed income and are entitled to one vote per share at meetings 
of the Company.
20 Statement of changes in equity
  Share Share   
 Share premium option Hedging Translation Retained Total 
 capital account reserve reserve reserve earnings equity 
Group £’000 £’000 £’000 £’000 £’000 £’000 £’000
Opening equity as at 1 August 2004 483 2,581 — — — 8,276 11,340
Exchange differences on translation of foreign operations — — — — 157 — 157
Net income recognised directly in equity  — — — — 157 — 157
Net movement in fair value of derivatives — — — 9 — — 9
Share option movement for period — — 300 — — — 300
Proﬁt for the period — — — — — 2,904 2,904
Total recognised income and expense for the period — — 300 9 — 2,904 3,213
Dividends — — — — — (1,478) (1,478)
Closing equity as at 31 July 2005 483 2,581 300 9 157 9,702 13,232
Opening equity as at 1 August 2005 483 2,581 300 9 157 9,702 13,232
Exchange differences on translation of foreign operations — — — — (271) — (271)
Net expense recognised directly in equity  — — — — (271) — (271)
Net movement in fair value of derivatives — — — (37) — — (37)
Share option movement for period — — 196 — — — 196
Proﬁt for the period — — — — — 3,429 3,429
Total recognised income and expense for the period — — 196 (37) — 3,429 3,588
Dividends — — — — — (3,586) (3,586)
Closing equity as at 31 July 2006 483 2,581 496 (28) (114) 9,545 12,963
   Share Share    
  Share premium option Hedging Retained Total 
  capital account reserve reserve earnings equity 
Company  £’000 £’000 £’000 £’000 £’000 £’000
Opening equity as at 1 August 2004  483 2,581 — — 6,626 9,690
Net movement in fair value of derivatives  — — — 9 — 9
Share option movement for period  — — 300 — — 300
Proﬁt for the period  — — — — 1,901 1,901
Total recognised income and expense for the period  — — 300 9 1,901 2,210
Dividends  — — — — (1,478) (1,478)
Closing equity as at 31 July 2005  483 2,581 300 9 7,049 10,422
Opening equity as at 1 August 2005  483 2,581 300 9 7,049 10,422
Share option movement for period  — — 196 — — 196
Net movement in fair value of derivatives  — — — (37) — (37)
Proﬁt for the period  — — — — 2,320 2,320
Total recognised income and expense for the period  — — 196 (37) 2,320 2,479
Dividends  — — — — (3,586) (3,586)
Closing equity as at 31 July 2006  483 2,581 496 (28) 5,783 9,315
_0_AIR_arb06.indd   28 20/10/2006   09:39:59 40 Air Partner PLC Annual report 2006
21 Net cash from operating activities
    2006 2005 
    £’000 £’000
Operating proﬁt for the period    4,601 3,975
Adjustments for:  
Depreciation    445 496
Exchange differences    — 255
Loss on disposal of property, plant and equipment   5 2
Hedging (gains)/losses recognised through IAS 39   (38) 9
Share option cost for period    196 300
Operating cash ﬂows before movements in working capital   5,209 5,037
(Increase)/decrease in receivables    (11,922) 2,102
Increase in payables    8,279 477
Cash generated from operations    1,566 7,616
Income taxes paid    (1,406) (1,650)
Interest paid    (6) (29)
     154 5,937
22 Analysis of net funds
    Foreign  
  31 July  exchange 31 July 
  2005 Cash ﬂow effect 2006 
  £’000 £’000 £’000 £’000
Cash and short-term deposits  15,437 (3,417) (89) 11,931
Net cash and cash equivalents  15,437 (3,417) (89) 11,931
Loans due within one year  (343) 343 — —
Total net funds  15,094 (3,074) (89) 11,931
Notes to the ﬁnancial statements continued
for the year ended 31 July 2006
_0_AIR_arb06.indd   29 20/10/2006   09:39:59 Air Partner PLC Annual report 2006 41
23 Operating lease arrangements
The Group as lessee
    2006 2005 
    Land and Land and 
     buildings  buildings 
    £’000 £’000
Minimum lease payments under operating leases recognised as costs for the year  353 335
At the balance sheet date, the Group has outstanding commitments for future minimum lease payments under non-cancellable operating 
leases, which fall due as follows:
Within one year    100 89
In the second to ﬁfth year inclusive    605 23
After ﬁve years    — 678
    705 790
Operating lease payments represent rentals payable by the Group for certain ofﬁce properties it uses. Leases are negotiated in isolation, 
dependent on the trading conditions in the country/region concerned.
The Group as lessor
At the balance sheet date, the Group has outstanding commitments for future minimum lease payments under non-cancellable operating 
leases, which fall due as follows:
    2006 2005 
    Aircraft  Aircraft 
     leasing leasing 
    £’000 £’000
Within one year    519 519
In the second to ﬁfth year inclusive    267 1,305
After ﬁve years    — —
    786 1,824
Aircraft leasing rental income earned during the year was £534,000 (2005: £523,000).
24 Events after the balance sheet date
On the 7 September Air Partner Leasing Pty Ltd disposed of two of its four aircraft for US$2,000,000 and a gain on disposal of US$215,000. 
At the year end these planes had a net book value of US$1,775,000 and as a result of the sale, tax liabilities have accrued to the sum 
of US$64,500.
For details on the acquisition of Gold Air International Limited, please turn to the Directors’ report on page 16.
25 Non-current assets held for sale
Because of the impending sale at the balance sheet date of four aircraft held in Australia, these resources have been transferred to non-current 
assets held for sale from where they were previously held in property, plant and equipment.
In the Company’s balance sheet, the item that has been moved is the investment in Air Partner Leasing Pty Ltd, as it is this vehicle in which 
the ﬁnal two planes will be sold.
_0_AIR_arb06.indd   30 20/10/2006   09:39:59 42 Air Partner PLC Annual report 2006
26 Explanation of transition to IFRS
Group
The reconciliations of equity as at 1 August 2004 (date of transition to IFRS) and at 31 July 2005 (date of last UK GAAP ﬁnancial statements) 
and the reconciliation of proﬁt for 2005, as required by IFRS 1, have been included below.
Reconciliation of equity at 1 August 2004
  Previous 
  UK GAAP Remove Recognise IFRS 
  1 August   proposed   share  1 August 
   2004 dividend options 2004 
  £’000 £’000 £’000 £’000
Assets    
Non-current assets    
Property, plant and equipment  2,546 — — 2,546
Deferred tax assets  132 — 31 163
  2,678 — 31 2,709
Current assets    
Trade and other receivables  13,716 — — 13,716
Cash and cash equivalents  9,983 — — 9,983
  23,699 — — 23,699
Total assets   26,377 — 31 26,408
Current liabilities     
Trade and other payables  (8,847) 1,129 — (7,718)
Current tax liabilities  (461) — — (461)
Bank overdrafts and loans  (325) — — (325)
Other creditors  (6,942) — — (6,942)
  (16,575) 1,129 — (15,446)
Net current assets  7,124 1,129 — 8,253
Non-current liabilities    
Bank overdrafts and loans  (326) — — (326)
Long-term provisions  (101) — — (101)
Deferred tax liabilities   (197) — — (197)
  (624) — — (624)
Total liabilities  (17,199) 1,129 — (16,070)
Net assets  9,178 1,129 31 10,338
Equity    
Share capital  466 — — 466
Share premium account  1,281 — — 1,281
Hedging reserve  — — — —
Translation reserve  — — — —
Share option reserve  — — 104 104
Retained earnings  7,268 1,129 (73) 8,324
Equity attributable to equity holders of the parent 9,015 1,129 31 10,175
Minority equity interest  163 — — 163
Total equity  9,178 1,129 31 10,338
Notes to the ﬁnancial statements continued
for the year ended 31 July 2006
_0_AIR_arb06.indd   31 20/10/2006   09:39:59 Air Partner PLC Annual report 2006 43
26 Explanation of transition to IFRS (continued)
Group (continued)
Reconciliation of equity as at 31 July 2005
      Recognise   
   Previous   hedging   
   UK GAAP Remove  Reclassify losses on Recognise IFRS 
   31 July   proposed   translation ﬁnancial  share  31 July 
   2005 dividend differences Instruments options 2005 
   £’000 £’000 £’000 £’000 £’000 £’000
Assets      
Non-current assets      
Property, plant and equipment   2,373 — — — — 2,373
Deferred tax assets   135 — — 3 90 228
   2,508 — — 3 90 2,601
Current assets      
Trade and other receivables   11,691 — — — — 11,691
Cash and cash equivalents   15,437 — — — — 15,437
   27,128 — — — — 27,128
Total assets    29,636 — — 3 90 29,729
Current liabilities      
Trade and other payables   (9,121) 3,073 — — — (6,048)
Current tax liabilities   (521) — — — — (521)
Bank overdrafts and loans   (343) — — — — (343)
Other creditors   (9,165) — — — — (9,165)
   (19,150) 3,073 — — — (16,077)
Net current assets   7,978 3,073 — — — 11,051
Non-current liabilities      
Long-term provisions   (111) — — — — (111)
Deferred tax liabilities    (134) — — — — (134)
   (245) — — — — (245)
Total liabilities   (19,395) 3,073 — — — (16,322)
Net assets   10,241 3,073 — 3 90 13,407
Equity      
Share capital   483 — — — — 483
Share premium account   2,581 — — — — 2,581
Hedging reserve   — — — 9 — 9
Translation reserve   — — 157 — — 157
Share option reserve   — — — — 300 300
Retained earnings   7,002 3,073 (157) (6) (210) 9,702
Equity attributable to equity holders of the parent  10,066 3,073 — 3 90 13,232
Minority equity interest   175 — — — — 175
Total equity   10,241 3,073 — 3 90 13,407
_0_AIR_arb06.indd   32 20/10/2006   09:39:59 44 Air Partner PLC Annual report 2006
26 Explanation of transition to IFRS (continued)
Group (continued)
Reconciliation of proﬁt for the year ended 31 July 2005
 Previous  Recognise   
 UK GAAP  Recognise hedging losses Reclassify IFRS  
  31 July  share   on ﬁnancial  translation 31 July 
 2005 options instruments differences 2005 
 £’000 £’000 £’000 £’000 £’000
Revenue 123,585 — — (1,064) 122,521
Cost of sales (109,199) — — 916 (108,283)
Gross proﬁt 14,386 — — (148) 14,238
Administrative expenses (10,055) (300) (9) 101 (10,263)
Operating proﬁt 4,331 (300) (9) (47) 3,975
Finance income 468 — — — 468
Finance costs (28) — — (1) (29)
Proﬁt before tax 4,771 (300) (9) (48) 4,414
Taxation (1,546) 90 3 26 (1,427)
Proﬁt for the period 3,225 (210) (6) (22) 2,987
Attributable to:     
Equity holders of the parent 3,142 (210) (6) (22) 2,904
Minority interests 83 — — — 83
 3,225 (210) (6) (22) 2,987
Company
The reconciliations of equity as at 1 August 2004 (date of transition to IFRS) and at 31 July 2005 (date of last UK GAAP ﬁnancial statements) 
and the reconciliation of proﬁt for 2005, as required by IFRS 1, have been included below.
Reconciliation of equity at 1 August 2004
  Previous    
  UK GAAP Remove Recognise IFRS 
  1 August   proposed   share  1 August 
   2004 dividend options 2004 
  £’000 £’000 £’000 £’000
Assets    
Non-current assets    
Property, plant and equipment  163 — — 163
Investments  933 — — 933
Deferred tax assets  120 — 31 151
  1,216 — 31 1,247
Current assets    
Trade and other receivables  5,502 — — 5,502
Cash and cash equivalents  6,336 — — 6,336
  11,838 — — 11,838
Total assets   13,054 — 31 13,085
Current liabilities    
Trade and other payables  (3,430) 931 — (2,499)
Current tax liabilities  (246) — — (246)
Bank overdrafts and loans  (325) — — (325)
Other creditors  (1,442) — — (1,442)
  (5,443) 931 — (4,512)
Net current assets  6,395 931 — 7,326
Notes to the ﬁnancial statements continued
for the year ended 31 July 2006
_0_AIR_arb06.indd   33 20/10/2006   09:40:00 Air Partner PLC Annual report 2006
26 Explanation of transition to IFRS (continued)
Company (continued)
Reconciliation of equity at 1 August 2004 (continued)
  Previous    
  UK GAAP Remove Recognise IFRS 
  1 August   proposed   share  1 August 
   2004 dividend options 2004 
  £’000 £’000 £’000 £’000
Non-current liabilities    
Bank overdrafts and loans  (326) — — (326)
  (326) — — (326)
Total liabilities  (5,769) 931 — (4,838)
Net assets  7,285 931 31 8,247
Equity    
Share capital  466 — — 466
Share premium account  1,281 — — 1,281
Hedging reserve  — — — —
Share option reserve  — — 104 104
Retained earnings  5,538 931 (73) 6,396
Total equity  7,285 931 31 8,247
Reconciliation of equity as at 31 July 2005
   Recognise   
 Previous  hedging   
 UK GAAP Remove  losses on Recognise IFRS 
 31 July   proposed  ﬁnancial  share  31 July 
 2005 dividend instruments options 2005 
 £’000 £’000 £’000 £’000 £’000
Assets     
Non-current assets     
Property, plant and equipment 275 — — — 275
Investments 1,002 — — — 1,002
Deferred tax assets 120 — 3 90 213
 1,397 — 3 90 1,490
Current assets     
Trade and other receivables 3,321 — — — 3,321
Cash and cash equivalents 10,708 — — — 10,708
 14,029 — — — 14,029
Total assets  15,426 — 3 90 15,519
Current liabilities     
Trade and other payables (5,246) 2,996 — — (2,250)
Current tax liabilities (373) — — — (373)
Bank overdrafts and loans (343) — — — (343)
Other creditors (2,131) — — — (2,131)
 (8,093) 2,996 — — (5,097)
Net current assets 5,936 2,996 — — 8,932
Net assets 7,333 2,996 3 90 10,422
Equity     
Share capital 483 — — — 483
Share premium account 2,581 — — — 2,581
Hedging reserve — — 9 — 9
Share option reserve — — — 300 300
Retained earnings 4,269 2,996 (6) (210) 7,049
Total equity 7,333 2,996 3 90 10,422
45
_0_AIR_arb06.indd   34 20/10/2006   09:40:00 46 Air Partner PLC Annual report 2006
Notes to the ﬁnancial statements continued
for the year ended 31 July 2006
Principal differences for Group and Company
1 Dividend recognition – IAS 10
Under current UK GAAP , proposed dividends are recognised in the ﬁnancial results for the period to which they relate. However, under IFRS, 
a dividend can only be recognised if it has been formally declared during the accounting period reported.
The Air Partner Board declares interim and ﬁnal dividends after the end of each accounting period at the same time as approving the 
Interim and Annual Reports. Hence, Air Partner will no longer accrue proposed dividends in the ﬁnancial period to which they relate.
2 Accounting for foreign currency translations – IAS 21 and ﬁnancial instruments – IAS 39
Air Partner PLC has a policy of forward purchasing/selling foreign currency to cover future contracts. Under IAS 39 any gains or losses from 
the booked value against the fair value of forward foreign currency contracts have to be recognised through a hedging and translation 
reserve at period end.
Translation differences on the exchange conversion of a foreign subsidiary are now posted to a hedging and translation reserve rather than 
the retained earnings account.
3 Share-based payments – IFRS 2 
The Group has adopted IFRS 2 only in respect of awards granted after 7 November 2002 which had not vested at 1 August 2005. 
A charge is made to the operating proﬁt representing the fair value of share options granted to employees with the opposing entry taken to 
equity. The fair value has been calculated using the Black Scholes model and is charged to the income statement over the relevant vesting period.
4 Segmental reporting – IAS 14
Both UK GAAP and IFRS require statutory segmental reporting to match the internal reporting structure. Under UK GAAP there is an 
exemption if the disclosure of a particular segment is considered by the directors to be prejudicial to the interests of the Company. 
Under IFRS there is no exemption and Air Partner will disclose segment results by geographic location. 
_0_AIR_arb06.indd   35 20/10/2006   09:40:00 Air Partner PLC Annual report 2006 47
Notice is hereby given that the Annual General Meeting of the Company will be held at 10am on 22 November 2006 for the transaction 
of the following business:
Ordinary business
As ordinary business to consider and, if thought ﬁt, to pass the following resolutions of which 1 to 8 will be proposed as ordinary resolutions 
and resolution 9 will be proposed as a special resolution:
1)  To receive the Directors’ report and accounts for the year ended 31 July 2006 together with the auditor’s report on those accounts and 
on the auditable part of the Directors’ remuneration report.
2) To approve the Directors’ remuneration report for the year ended 31 July 2006.
3) To declare and approve the payment of a ﬁnal dividend for the year ended 31 July 2006 of 12.1 pence per ordinary share.
4) To elect M A Briffa as a director.
5) To re-elect A G Mack as a director.
6) To re-elect S J White as a director.
7)  To re-appoint Baker Tilly as auditor to the Company until the conclusion of the next Annual General Meeting of the Company and to 
authorise the directors to ﬁx their remuneration.
8)  THAT subject to the passing of resolution 10 below, the directors be generally and unconditionally authorised, pursuant to Section 80 
of the Companies Act 1985 (the “Act”), to exercise all powers of the Company to allot relevant securities (as deﬁned in the Act) up to a 
maximum nominal amount of £193,560.72 to such persons and at such times and on such terms as they think proper during the period 
of ﬁve years from the date of the passing of this resolution (unless previously revoked or varied by the Company in general meeting) and 
at any time thereafter pursuant to any offer or agreement made by the Company before the expiry of this authority, so that all previous 
authorities of the directors pursuant to the said Section 80 be and are hereby revoked.
9)  THAT subject to the passing of resolution 10 below, the directors be and are empowered in accordance with Section 95 of the 
Companies Act 1985 (the “Act”) to sell treasury shares (as deﬁned in Section 162 of the Act) and, subject to the passing of resolution 8  
set out in the Notice convening this Meeting, make other allotments of equity securities (and the expression “allotment of equity securities” 
and like expressions used in this resolution shall have the meaning given to them by virtue of Section 94 of the Act) for cash, pursuant 
to the authority conferred on them to allot relevant securities (as deﬁned in Section 80 of the Act) by that resolution, in each case as if 
Section 89(1) and sub-sections (1) – (6) of Section 90 of the Act did not apply to any such sale or allotment, provided that the power 
conferred by this resolution shall be limited to:
 (i)  the allotment of equity securities in connection with an issue or offering in favour of holders of equity securities and any other 
persons entitled to participate in such issue or offering (other than the Company itself in respect of any shares held by it as treasury 
shares) where the equity securities respectively attributable to the interests of such holders and persons are proportionate (as nearly 
as may be) to the respective number of equity securities held by or deemed to be held by them on the record date of such allotment, 
subject only to such exclusions or other arrangements as the directors may consider necessary or expedient to deal with fractional 
entitlements or legal or practical problems under the laws or requirements of any recognised regulatory body or stock exchange in 
any territory; and
 (ii)  the allotment (otherwise than pursuant to paragraph 9(i) above) of equity securities up to an aggregate nominal value not exceeding 
£24,163.80; and this power, unless renewed, shall expire at the end of ﬁve years from the date of the passing of this resolution but 
shall extend to the making, before such expiry, of an offer or agreement which would or might require an allotment of equity securities 
to be made after such expiry and the directors may make an allotment of equity securities in pursuance of such offer or agreement 
as if the authority conferred hereby had not expired.
Notice of Annual General Meeting
_0_AIR_arb06.indd   36 20/10/2006   09:40:00 48 Air Partner PLC Annual report 2006
Special business
As special business to consider and, if thought ﬁt, to pass the following resolutions of which resolutions 10 and 12 will be proposed as 
ordinary resolutions and resolution 11 will be proposed as a special resolution:
10)  THAT the authorised share capital of the Company be increased from £575,000 to £750,000 by the creation of 3,500,000 ordinary 
shares of 5 pence each in the capital of the Company, such shares to form one class with and rank pari passu in all respects with the 
existing ordinary shares of the Company. 
11)  THAT the Company be and is hereby generally and unconditionally authorised for the purpose of Section 166 of the Act to make market 
purchases (as deﬁned in Section 163 of the Act) of ordinary shares of 5 pence each in the capital of the Company (“ordinary shares”) 
provided that:
 i. the maximum number of ordinary shares hereby authorised to be purchased is 966,552;
 ii.  the minimum price (exclusive of expenses) which may be paid for such ordinary shares is 5 pence per share, being the nominal 
amount thereof; 
 iii.  the maximum price (exclusive of expenses) which may be paid for such ordinary shares shall be an amount equal to 5% above 
the average of the middle market quotations for such shares taken from The London Stock Exchange Daily Ofﬁcial List for the ﬁve 
business days immediately preceding the day on which the purchase is made;
 iv.  the authority hereby conferred shall (unless previously renewed or revoked) expire on the earlier of the end of the next Annual 
General Meeting of the Company and the date which is 18 months after the date on which this resolution is passed; and
 v.  the Company may make a contract to purchase its own ordinary shares under the authority conferred by this resolution prior to 
the  expiry of such authority, and such contract will or may be executed wholly or partly after the expiry of such authority, and the 
Company may make a purchase of its own ordinary shares in pursuance of any such contract.
12)  THAT the Board of directors of the Company be authorised to (i) amend Rule 4.1 of the Air Partner PLC Company Share Option Plan 2003 
in order to increase the overall dilution limit from 10% to 15%. and (ii) do all such acts and things as may be necessary to give effect to 
the aforementioned amendment.
S J White
Company Secretary
11 October 2006
(1)  A member entitled to attend and vote at the meeting convened by the above Notice is entitled to appoint one or more proxies to attend and, on a poll, to vote in his place. 
A proxy need not be a member of the Company.
(2)  To appoint a proxy you may use the Form of Proxy enclosed with this Notice of Annual General Meeting. To be valid, the Form of Proxy, together with the power of attorney or other 
authority (if any) under which it is signed or a notarially certified or office copy of the same, must be deposited by 10am on 20 November 2006 at the offices of the Company’s 
Registrar, Capita Registrars, The Registry, 34 Beckenham Road, Beckenham, Kent, BR3 4TU.
(3)  Pursuant to regulation 41 of the Uncertificated Securities Regulations 2001, only shareholders registered in the register of members of the Company as at 10am on 
20 November 2006 shall be entitled to attend and vote at the Annual General Meeting in respect of the number of shares registered in their name at such time. If the meeting 
is adjourned, the time by which a person must be entered on the register of members of the Company in order to have the right to attend and vote at the adjourned meeting is 
10am on the day preceding the date fixed for the adjourned meeting. Changes to the register of members after the relevant times shall be disregarded in determining the rights 
of any person to attend and vote at the meeting.
(4)  In the case of joint holders, the vote of the senior holder who tenders a vote whether in person or by proxy shall be accepted to the exclusion of the votes of the other joint holders 
and, for this purpose, seniority shall be determined by the order in which the names stand in the register of members of the Company in respect of the relevant joint holding.
(5)  The following documents are available for inspection at the registered office of the Company, Platinum House, Gatwick Road, Crawley, West Sussex RH10 9RP , during usual 
business hours on any weekday (Saturdays, Sundays and public holidays excluded) from the date of this Notice until the conclusion of the Annual General Meeting and will 
be available for inspection at the place of the Annual General Meeting for at least 15 minutes prior to and during the meeting:
 (a) the register of interests of the directors and their families in the share capital of the Company;
 (b) copies of service contracts between the directors and the Company or its subsidiary undertakings; and
 (c) the Articles of Association of the Company.
Notice of Annual General Meeting continued
_0_AIR_arb06.indd   37 20/10/2006   09:40:00 25 years ago, Air Partner was a small, successful air taxi operator and aircraft charter broker based at London’s second airport, 
Gatwick. The Company had a sales turnover of £1 million, traded under the name of Air London and was an unlisted player in 
an unknown market.
In the intervening years the Company, under the Air Partner brand, has transformed itself into the only truly global aircraft charter 
provider, is listed on the London Stock Exchange, and has many of the biggest institutional shareholders owning the majority of 
its shares. In that period it has traded over £1 billion of successful contracts.
The Company’s professional advice, smart procurement and logistical expertise combine with personal recommendations to 
provide a unique capability, that is best described as ‘the global trading floor for aircraft charter’.
In selling the highest quality of air travel to the most discerning of clients, Air Partner offers value added services that make the 
difference between an ordinary flight and a highly successful operation delivering tangible results. Air Partner is proud of its 
stable and growing client base, which is serviced by its 150 highly-professional traders and logistics experts, providing global 
solutions at best value-for-money rates.
For in today’s market, it is not enough to organise a carrier to perform a described mission; traders must be supported by a 
logistics team that oversees the flight, ensuring thorough preparation with no margin for error. Critical to this is Air Partner’s 
unique 24-hour Operations Centre in the UK, and its global network of offices stretching from Europe, across the Middle East, 
to Asia, the Far East and across the Pacific to North America. Each office is manned by local teams that have the contact network 
to mate local knowledge with global expertise and support – in short a bespoke premier charter service.
Corporate statement
T H E D E S I G N P O R T F O L I O
a member of the flathill communications group plc 
www.flathillplc.com
designed & produced by
 IFC Corporate statement
 01 Highlights
 02 At a glance
 04 Chairman’s statement
 06 Chief Executive’s review
 10 Gold Air
 11 Directors and Senior Management
 12 Advisors
 13 Directors’ report
 17 Directors’ remuneration report
 20  Corporate governance statement
 23 Independent auditor’s report
 24 Consolidated income statement
 24  Consolidated statement of recognised  
income and expense
 25 Consolidated balance sheet
 26 Company balance sheet
 27 Consolidated cash flow statement
 27  Reconciliation of net cash flow  
to movement in net funds 
 28 Notes to the financial statements 
 47 Notice of Annual General Meeting
_cover.indd   2 19/10/2006   17:52:03 Annual report 2006
Platinum House 
Gatwick Road, Crawley 
West Sussex RH10 9RP 
Telephone +44 (0)1293 844800
www.airpartner.com
Air Partner PLC Annual report 2006
_cover.indd   1 19/10/2006   17:52:03