Air New Zealand 2010 Annual Report Download - page 45

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22. CAPITAL COMMITMENTS
GROUP
2010
$M
GROUP
2009
$M
COMPANY
2010
$M
COMPANY
2009
$M
Aircraft and engines 3,062 3,070 3,056 2,986
Other property, plant and equipment 9 3 8 3
Intangible assets 1 - 1 -
3,072 3,073 3,065 2,989
Commitments shown are for those asset purchases committed and contracted for and converted at the year end exchange rate.
On 2 November 2009, Air New Zealand announced the acquisition of fourteen Airbus A320 aircraft and associated engines. Air New Zealand
subsequently substituted the rights to four of these aircraft to an operating lessor. The remaining ten aircraft will be delivered between June 2013 and
September 2016. Under the agreement the Group secured the right to purchase up to an additional eleven aircraft.
The Group has entered into firm commitments to purchase five Boeing 777-300ER aircraft and two spare engines. The five aircraft will be delivered
between November 2010 to January 2012 and the spare engines in November 2010 and November 2011.
The Group has entered into firm commitments to purchase eight Boeing 787-9 (B787-9) aircraft and associated engines and spares. The B787-9
aircraft that are subject to firm commitments were originally scheduled for delivery between the period December 2010 to September 2013. On 25
February 2009, Air New Zealand agreed to revised delivery dates. The Group received notification from Boeing on 9 October 2009 that these aircraft
will be further delayed with deliveries likely to be in the last quarter of 2013 through to the third quarter of 2016. The capital commitments in the above
table reflect the revised delivery schedule.
The Group also has the right (but no obligation) to purchase three Q400 aircraft.
23. OPERATING LEASE COMMITMENTS
GROUP
2010
$M
GROUP
2009
$M
COMPANY
2010
$M
COMPANY
2009
$M
Aircraft leases payable
Not later than 1 year 219 234 120 126
Later than 1 year and not later than 5 years 681 275 216 295
Later than 5 years 525 5 140 173
1,425 514 476 594
Property leases payable
Not later than 1 year 46 39 42 35
Later than 1 year and not later than 5 years 110 110 101 102
Later than 5 years 81 88 76 85
237 237 219 222
The Company leases a number of aircraft from its wholly owned subsidiary, Air New Zealand Aircraft Holdings Limited.
New Zealand International Airlines Limited, a wholly owned subsidiary, has the option to purchase two Boeing 737-300 aircraft which are currently under
an operating lease arrangement. The options may be exercised at certain predetermined dates, lapsing in September 2011 and July 2012. The directors
expect that the options will not be exercised.
Subject to negotiation, certain aircraft operating leases give the Group the right to renew the lease.
AIR NEW ZEALAND
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
AS AT 30 JUNE 2010
43