Cathay Pacific 1998 Annual Report Download - page 54

Download and view the complete annual report

Please find page 54 of the 1998 Cathay Pacific annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 70

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70

52 CATHAY PACIFIC AIRWAYS LIMITED ANNUAL REPORT 1998
Notes to the Accounts – Balance Sheets
19. Long-term loans, bonds and other liabilities
(continued)
Borrowings other than bank loans are repayable on various dates up to 2005 at interest rates between 3.75%
and 10.2% per annum.
Long-term loans, bonds and other liabilities of the Group not wholly repayable within five years amounted to
HK$3,218 million (1997: HK$2,257 million).
As at 31st December 1998, the Company and the Group had long-term liabilities which were defeased by funds
and other investments totalling HK$32,847 million (1997: HK$28,719 million). Accordingly, these liabilities and the
related funds, as well as related expenditure and income, have not been included in the consolidated accounts.
20. Obligations under finance leases
The Group has commitments under finance lease agreements in respect of aircraft and related equipment
expiring during the years 1999 to 2016. The future payments under these finance leases are as follows:
Group Company
1998 1997 1998 1997
HK$M HK$M HK$M HK$M
Within one year 4,985 3,147 4,914 3,363
After one year but within two years 4,490 3,888 4,527 4,111
After two years but within five years 13,877 10,178 14,903 10,907
After five years 30,564 26,229 31,124 27,674
53,916 43,442 55,468 46,055
Interest charges relating to future periods (17,846) (13,874) (17,829) (14,776)
36,070 29,568 37,639 31,279
Security deposits, notes and zero coupon bonds (14,075) (11,121) (5,168) (4,798)
Amounts due within one year included under current
liabilities (note 14) (1,360) (916) (2,479) (1,202)
20,635 17,531 29,992 25,279
As at 31st December 1998, the Company and the Group had obligations under finance leases which were
defeased by funds and other investments amounting to HK$2,117 million and HK$3,382 million respectively (1997:
HK$1,415 million and HK$1,601 million). Accordingly, these liabilities and the related funds, as well as related
expenditure and income, have not been included in the consolidated accounts.
The Company’s obligations under finance leases exceeded the Group’s by HK$1,569 million (1997: HK$1,711
million) as a result of net amounts owing to subsidiary companies on certain aircraft financing arrangements,
which have been eliminated on consolidation.