Singapore Airlines 2003 Annual Report Download - page 109

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107
SIA Annual Report 02/03
Notes to the Financial Statements
31 March 2003
33 Related Party Transactions (in $ million)
The followings are transactions entered into by the Group with related parties, on normal commercial terms:
The Group
2002-03 2001-02
Purchases of services from associated companies 321.8 296.4
Services rendered to associated companies (1.8) (1.1)
Purchases of services from joint venture companies 8.6 12.7
Commission received from a joint venture company (2.3) (1.7)
Services rendered to joint venture companies (4.9) –
34 Subsequent Events
(a) On 3 April 2003, five Pratt and Whitney 4056 engines were sold to UT Finance Corporation.
(b) SIA retired the last three aircraft in its A340-300 fleet by mid-April 2003. The Company took delivery of one new
A340-300 and B777-200A aircraft on 29 April and 1 May 2003, respectively. On 8 May 2003, the A340-300
aircraft was traded-in to Boeing.
(c) With most of the SARS-affected countries being in the East Asia region, the impact on SIA services was severe,
and the Airline took swift action to manage its costs. This included a 30% reduction in capacity, in terms of
available seat kilometers, for the period April to June 2003. Operations to six destinations – Brussels, Chicago,
Las Vegas, Hiroshima, Kaohsiung and Mauritius – were terminated, while those to Fukuoka, Jeddah, Guangzhou
and Madrid were suspended. The launch of a thrice-weekly Bangalore service has been deferred.
(d) SilkAir, the SIA Group’s regional airline, announced cutbacks in capacity of 24 per cent.
35 Comparative Figures
Certain comparative figures have been reclassified to conform with the current year’s presentation.
The corporatization of SIA Cargo took effect from 1 July 2001. The Company’s revenue for 2001-02 includes cargo
revenue for the first 3 months of April to June 2001, and bellyhold revenue from SIA Cargo for the period July 2001
to March 2002.