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107
SIA Annual Report 03/04
Notes to the Financial Statements
31 March 2004
34 Related Party Transactions (in $ million)
The following are transactions entered into by the Group with related parties, on normal commercial terms:
The Group
2003-04 2002-03
––––––––––––––––––––––––––––––––
Purchases of services from associated companies 288.6 321.8
Services rendered to associated companies (21.2) (1.8)
Purchases of services from joint venture companies 104.1 8.6
Commission received from a joint venture company – (2.3)
Services rendered to joint venture companies (24.8) (4.9)
Directors’ and key executives’ remuneration of the Company
Directors’ remuneration and fees amounted to $2.7 million (2003: $2.0 million) and $0.5 million (2003: $0.3 million)
respectively. Key executives’ remuneration other than the executive directors totalled $2.2 million (2003: $3.7 million).
Share options granted to and exercised by directors and key executives of the Company are as follows:
Aggregate Aggregate
options options
granted since exercised since Aggregate
Exercise price commencement commencement options
Options for options of scheme of scheme outstanding
granted during granted during to end of to end of at end of
financial year financial year financial year financial year Options financial year
Name of participant under review under review under review under review lapsed under review
––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––
Chew Choon Seng 152,000 $10.34 606,000 – – 606,000
LG Bey Soo Khiang 152,000 $10.34 418,000 – – 418,000
Huang Cheng Eng 114,000 $10.34 447,000 – – 447,000
35 Subsequent Events
On 1 April 2004, the business undertaking of SIA Properties Pte Ltd (100% owned subsidiary which primarily provided
intra-Group services) was transferred to the Company. The financial impact of the transfer was not material.
The Company signed an agreement with Dragonair on 5 May 2004 for the sale of five B747-400s. Separately, the
Company has executed a letter of intent with another airline to sell three B747-400s. The eight aircraft are to be
delivered between 2006 and 2008 after their scheduled releases from the operating fleet.
The Company added a fourth and fifth A340-500 aircraft on 8 April and 4 May 2004 respectively to its operating fleet,
and traded in one A310-300 to Boeing on 23 April 2004.
Singapore Airport Terminal Services Limited signed an agreement with Devro Group Limited on 20 April 2004, to
purchase approximately 49.8% of the ground and cargo handling business of PT Jasa Angkasa Semesta Tbk (“JAS
Airport Services”) for US$60 million. JAS Airport Services is a major ground and cargo handling company in Indonesia.
Listed on the Surabaya Stock Exchange, it has operations at 11 Indonesian airports, including Jakarta, Surabaya,
Denpasar/Bali and Medan.
On 26 April 2004, Singapore Airlines Cargo Pte Ltd sold one B747-400 freighter under a sale and leaseback agreement.
The aircraft is leased back for 10 years. The lease is an operating lease. The net surplus from the sale of this aircraft was
about $1.0 million.
On 7 May 2004, the jury in the US Federal Court of California awarded US$15 million to the family of two deceased
passengers in a lawsuit relating to the Flight SQ006 incident. The Company has been advised that the terms of the
Company’s insurance policy provide full cover for all passenger claims