Singapore Airlines 2002 Annual Report Download - page 93

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SIA Annual Report 01/02 93
Notes to the Financial Statements
31 March 2002
28 Analysis of Capital Expenditure Cash Flow (in $ million)
The Group The Company
2001 - 02 2000 - 01 2001 - 02 2000 - 01
Purchase of fixed assets 3,862.9 2,589.0 2,882.2 2,336.1
Less: Assets acquired under credit terms (330.5) (33.5) – –
Cash invested in capital expenditure 3,532.4 2,555.5 2,882.2 2,336.1
29 Capital and Other Commitments (in $ million)
The following commitments for capital expenditure have not been provided for in the financial statements:-
The Group The Company
31 March 31 March
2002 2001 2002 2001
Authorized and contracted for 16,267.0 17,638.5 14,501.8 17,333.5
Authorized but not contracted for 672.0 946.1 4.7 13.7
16,939.0 18,584.6 14,506.5 17,347.2
The Group’s share of capital expenditure commitments of a joint venture company:-
Joint venture company
31 March
2002 2001
Authorized and contracted for 1,021.2 1,169.2
The commitments relate principally to the acquisition of aircraft fleet and related equipment. Included in the Group’s share of capital
commitments of the joint venture company are certain commitments assigned by the Company to the joint venture company. The
Company remains contingently liable for those commitments of $420.6 million (2001: $654.4 million).
30 Contingent Liabilities
Flight SQ006
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. On 26 April 2002,
the Taiwan Aviation Safety Council released its final investigation report on the accident. Whilst the full implications of these
conclusions and recommendations are still being deliberated, SIA is currently a defendant in a number of lawsuits relating to the crash.
SIA maintains substantial insurance coverage which is sufficient to cover the 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.
Flight MI 185
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 remaining 6 outstanding claims resulting from the accident and the insurance cover carried,
the directors do not consider that the final settlement of the remaining claims will result in a material adverse financial effect on the
Company and the Group.
There are contingent liabilities in respect of guarantees given by the Group and the Company at 31 March 2002 amounting to
$125.2 million (2001 : $47.3 million) and $52.8 million (2001 : $25.0 million) respectively. $34.7 million of the Group’s liabilities are
secured with a deposit placement.