Cathay Pacific 2009 Annual Report Download - page 87

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29. Related party transactions (continued)
(d) Guarantees given by the Company in respect of bank loan facilities of an associate at 31st December 2009 are
disclosed in note 30 to the accounts.
(e) There were no material transactions with Directors and Executive Officers except for those relating to
shareholdings (Directors’ Report and Corporate Governance). Remuneration of Directors and Executive Officers
is disclosed in note 27 to the accounts.
30. Commitments and contingencies
(a) Outstanding commitments for capital expenditure authorised at the year end but not provided for in the
accounts:
Group Company
2009
HK$M
2008
HK$M
2009
HK$M
2008
HK$M
Authorised and contracted for 35,982 43,000 1,949 1,528
Authorised but not contracted for 4,458 4,255 605 512
40,440 47,255 2,554 2,040
Operating lease commitments are shown in note 10 to the accounts.
(b) Guarantees in respect of lease obligations, bank loans and other liabilities outstanding at the year end:
Group Company
2009
HK$M
2008
HK$M
2009
HK$M
2008
HK$M
Subsidiaries ––4,421 3,608
Associates 62 70 62 70
Staff 200 200 200 200
262 270 4,683 3,878
(c) The Company has under certain circumstances undertaken to maintain specified rates of return within the
Group’s leasing arrangements. The Directors do not consider that an estimate of the potential financial effect of
these contingencies can practically be made.
(d) The Company operates in many jurisdictions and in certain of these there are disputes with the tax authorities.
Provisions have been made to cover the expected outcome of the disputes to the extent that outcomes are
likely and reliable estimates can be made. However, the final outcomes are subject to uncertainties and resulting
liabilities may exceed provisions.
(e) The Company is the subject of investigations and proceedings with regard to its air cargo operations by the
competition authorities of various jurisdictions, including the European Union, Canada, Australia, Switzerland,
Korea and New Zealand. The Company has been cooperating with the authorities in their investigations and,
where applicable, vigorously defending itself. The investigations and proceedings are focused on issues relating
to pricing and competition. The Company is represented by legal counsel in connection with these matters.
On 24th December 2007, the Company received a Statement of Objections from the European Commission with
regard to the Company’s air cargo operations and, with the assistance of legal counsel, has responded.
On 15th December 2008, the Company received a Statement of Claim from the New Zealand Commerce
Commission with regard to the Company’s air cargo operations. The Company, with the assistance of legal
counsel, is evaluating the allegations and has responded.
On 17th July 2009, the Company received an Amended Statement of Claim from the Australian Competition &
Consumer Commission with regard to the Company’s air cargo operations. The Company, with the assistance of
legal counsel, has responded.
Notes to the Accounts
RELATED PARTY TRANSACTIONS / SUPPLEMENTARY INFORMATION
Cathay Pacific Airways Limited Annual Report 2009 85