Cathay Pacific 2000 Annual Report Download - page 52

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50 CATHAY PACIFIC AIRWAYS LIMITED ANNUAL REPORT 2000
11. Fixed assets
(continued)
(a) Finance leased assets
Certain aircraft are subject to leases with purchase options to be exercised by the Group at
the end of the respective leases. The remaining lease terms range from 2 to 16 years. Some
of the rent payments are on a floating basis which are generally linked to market rates of
interest. All leases permit subleasing rights, subject to appropriate consent from lessors. Early
repayment penalties would be payable on some of the leases should they be terminated prior
to their specified expiry dates.
(b)Leased out assets
As at 31st December 2000, two B747-200s (1999: six), five B747-300s (1999: five) and related
equipment were leased to third-party lessees on two-year operating leases. These have been
included under aircraft and related equipment as follows:
2000 1999
HK$M HK$M
Cost 3,327 4,948
Accumulated depreciation
At 1st January 2,560 3,598
Charge for the year 304 268
At 31st December 2,864 3,866
Net book value 463 1,082
The future minimum lease payments receivable under these operating leases for each of the
following periods are as follows:
2000 1999
HK$M HK$M
Within one year 98 298
After one year but within five years 15 293
113 591
(c) Operating leased assets
Certain aircraft, properties and other equipment are under operating leases.
Under the operating lease arrangements for aircraft, the lease rentals are fixed and subleasing
is not allowed. At 31st December 2000, the two B747-400s (1999: two) with purchase
options, and three A340-300s (1999: three) without purchase options, delivered and held
under operating leases were not capitalised. The estimated capitalised value of these leases
being the present value of the aggregate future lease payments is HK$563 million (1999:
HK$925 million).
Operating leases for properties and other equipment are normally set with fixed rental
payments with options to renew the leases upon expiry at new terms.
Notes to the Accounts – Balance Sheets