Singapore Airlines 2003 Annual Report Download - page 52

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Expenditure (continued)
Enhanced security measures, rate hikes and higher frequencies added $34 million to handling charges.
Communications, information technology and related expenses rose $19 million due to (i) maintenance of software and
computer equipment; (ii) IT professional and contract fees; and (iii) data transmission. The increase was cushioned by
lower costs for the hire of computer equipment.
Landing, parking and overflight charges were $15 million higher as a result of increase in rates and frequencies.
Inflight meals and other passenger costs rose $11 million as a result of higher passenger carriage (6.0 per cent increase
in passenger kilometres) and higher expenses on aircraft amenities and laundry. The increase was offset by new
measures to reduce waste.
Other costs increased by $50 million. This was largely due to the increase in comprehensive aviation insurance costs as
premium charges for Hull War Risks and Hull/Liability policies rose. Additional cover was also taken for Aviation Third
Party War Risks.
Fuel Productivity and Sensitivity Analysis
Fuel productivity as measured by ltk per American gallon (ltk/AG) increased 2.9 per cent over the previous year to 9.30
ltk/AG. This was partly attributable to the newer fleet of 45 B777 aircraft, with an average age of two years six months.
The increase in ltk/AG was also the result of higher loads carried in 2002-03.
A change in fuel productivity (passenger aircraft) of one per cent would impact the Company's annual fuel costs by
SGD16.5 million.
A change in fuel price of one US cent per American gallon would affect the Company's annual fuel costs of its
passenger operations by SGD19 million, before accounting for US Dollar exchange rate movements and changes in
volume of fuel consumed.
50 SIA Annual Report 02/03
Financial Review
Fuel Productivity of Passenger Fleet
LTK/AG
LTK/AG
1998-99 1999-00 2000-01 2001-02 2002-03
10.0
9.5
9.0
8.5
8.0
10.0
9.5
9.0
8.5
8.0