Singapore Airlines 2001 Annual Report Download - page 93

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28 Contingent Liabilities
On 31 October 2000, Flight SQ006 crashed on the runway at the Chiang Kai-Shek International Airport, Taipei en route to Los
Angeles. There were 83 fatalities among the 179 passengers and crew members aboard the Boeing 747 aircraft. While SIA is
currently a defendant in a number of lawsuits relating to the crash, SIA maintains substantial insurance coverage which is sufficient
to cover any claims arising from the crash. Accordingly, SIA believes that the resolution of these claims will have no material impact
on the financial position of SIA. SIA is unable to identify or predict the extent of any adverse effect on its revenues, yields or results
of operations which has resulted or may result from the public perception of the crash or from any future findings by the
investigation team headed by the Taiwan Aviation Safety Council.
Following the crash of flight MI 185 en route from Jakarta to Singapore on 19 December 1997, which resulted in the tragic loss of
the aircraft and all its 104 passengers and crew, the directors have considered its likely impact on the financial position of the
Company and the Group. Taking into account the actual and potential claims which may arise on the one hand and the insurance
cover carried on the other, the directors do not consider that the final settlement of all such claims, including the loss of the
aircraft, will result in a material adverse financial effect on the Company and the Group.
There are contingent liabilities (unsecured) in respect of guarantees given by the Group and the Company at 31 March 2001
amounting to $47.3 million (2000 : $38.7 million) and $25.0 million (2000 : $nil) respectively.
29 Related Party Transactions (in $ million)
The followings are transactions entered into by the Group with related parties:
The Group
2000 - 2001 1999 - 2000
Purchases of services from associated companies 440.9 357.2
Purchases of services from joint venture companies 12.6 14.8
Sale of aircraft to a joint venture company – (34.9)
Commission received from a joint venture company (5.9) (5.7)
30 Subsequent Event
The Company made a further purchase of 2,054,000 shares from 1 April to 17 April 2001 at a total cost, including brokerage, of
$25.3 million pursuant to the share buyback scheme. This brings the total amount spent since the inception of the share buyback
scheme up to the date of this report to $1,011.0 million for 64,402,600 shares.
31 Comparative Figures
The presentation and classification of items in the financial statements have been changed to conform to the requirements of SAS 1
– " Presentation of Financial Statements" , SAS 15 – " Leases" and SAS 23 – " Segmental Reporting" . As a result, additional line
items and disclosures have been included in the profit and loss accounts and notes to the financial statements and a new statement
of changes in equity has been presented as required by these standards. Comparative figures have been adjusted to provide proper
comparison with current year’s presentation.
91 SIA annual report 00/01
Notes to the Financial Statements
31 March 2001