Singapore Airlines 2013 Annual Report Download - page 170

168
SINGAPORE AIRLINES
NOTES TO THE FINANCIAL STATEMENTS
35 Capital and Other Commitments (in $ million) (continued)
(b) Operating lease commitments
As lessee
Aircraft
The Company has 3 B777-200, 3 B777-200ER, 2 B777-300, 20 A330-300 and 9 A380-800 aircraft under operating
leases with fixed rental rates. Under 5 of the aircraft lease agreements, the rentals will be adjusted if one-month LIBOR
exceeds 6.50% per annum.
The original lease terms range from 5 to 10.5 years. In 4 of the aircraft lease agreements, the Company holds options
to extend the lease for a further maximum period of 5 years. In 5 other aircraft lease agreements, the Company holds
options to extend the leases for a further maximum period of 3 years and in 24 others, the Company holds the options
to extend the leases for a further maximum period of 2 years. For one lease, the Company has the option to terminate
the lease 2 years in advance of the lease expiry date. For the other 3 agreements, there is no option for renewal.
Sub-leasing is allowed under all the lease arrangements.
SIA Cargo has 3 B747-400F aircraft under operating leases with fixed rental rates. The lease terms range from 10 to 11
years. In one of the aircraft lease agreements, SIA Cargo holds the option to extend the lease for a further maximum
period of 2 years. For the other 2 agreements, there is no option for renewal. Sub-leasing is allowed under all the lease
arrangements.
SilkAir (Singapore) Private Limited (“SilkAir”) has 6 A320-200 and 3 A319-100 aircraft under operating leases with
fixed rental rates. The original lease terms for the 3 A319-100s range from 6.9 to 11.5 years, which SilkAir holds
options to extend the leases up to a maximum of 3 years. The original lease terms for the 6 A320-200s range from
4 to 11.8 years and SilkAir holds options to extend the leases for 2 to 5 years. None of the operating lease agreements
confer on SilkAir an option to purchase the related aircraft. Sub-leasing is allowed under all the lease arrangements.
Future minimum lease payments under non-cancellable operating leases are as follows:
The Group The Company
31 March 31 March
2013 2012 2013 2012
Not later than one year 641.6 561.5 573.6 492.2
Later than one year but not later than five years 1,964.4 1,968.1 1,813.9 1,768.9
Later than five years 866.3 927.0 791.0 828.0
3,472.3 3,456.6 3,178.5 3,089.1
Engines
The Company has operating lease agreements for 4 GE90-115B engines with fixed rental rates. The basic lease term
for each engine is 5 years and 10 months with an option to extend the lease for a further maximum period of 6 years.
During the financial year, the Company entered into operating lease agreements for 14 Trent 800 engines with fixed
rental rates. The basic lease term for each engine varies from 1 to 6 years with extension options.
31 March 2013