Cathay Pacific 1998 Annual Report Download - page 61

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59
CATHAY PACIFIC AIRWAYS LIMITED ANNUAL REPORT 1998
Notes to the Accounts – Supplementary Information
31. Commitments and contingencies
(continued)
These commitments are expected to be paid as follows:
HK$M
1999 3,325
2000 180
Beyond 2000 723
4,228
Commitments include amounts for the acquisition of three B777s.
(b) At the end of the year, the Group had commitments to make annual payments under operating leases as
follows, analysed by expiry dates:
1998 1997
HK$M HK$M HK$M HK$M
Land and buildings
– within one year 122 261
– between two and five years 250 247
– after five years 81 453 18 526
Aircraft and related equipment
– within one year ––
– between two and five years 200 104
– after five years – 200 99 203
Others
– within one year 253
– between two and five years 21 4
– after five years 16 39 178 235
692 964
(c) Under some of the Group’s leasing arrangements for aircraft and related equipment, the Company has
undertaken to indemnify the lessors so as to maintain a specified rate of return on each of the lessors’
investments as agreed at the inception of the lease. The Directors do not consider that an estimate of the
potential financial effect of these contingencies can practically be made.
(d) At 31st December 1998, contingent liabilities existed in respect of guarantees given by the Company relating to
long-term loan facilities of up to HK$700 million (1997: HK$800 million).
32. Comparative amounts
Certain comparative amounts have been reclassified to conform with the current year’s presentation.