Cathay Pacific 2001 Annual Report Download - page 43

Download and view the complete annual report

Please find page 43 of the 2001 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 72

  • 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
  • 71
  • 72

Cathay Pacific Airways Limited Annual Report 2001 41
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 1 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 2001, 5 B747-300s (2000: 5 B747-300s and 2 B747-200s) and related equipment were
leased to a third-party lessee on operating leases with lease terms of 5 years. These have been included under
aircraft and related equipment as follows:
2001 2000
HK$M HK$M
Cost 2,798 3,327
Accumulated depreciation and impairment
At 1st January 2,412 2,560
Charge for the year 109 304
At 31st December 2,521 2,864
Net book value 277 463
The future minimum lease payments receivable under these operating leases for each of the following periods
are as follows:
2001 2000
HK$M HK$M
Within 1 year 113 98
After 1 year but within 5 years 282 15
395 113
(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 2001, the 2 B747-400s (2000: 2) and 4 A340-300s (2000: 3) all with 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$1,222 million (2000: HK$563 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