Singapore Airlines 2003 Annual Report Download - page 65

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63
SIA Annual Report 02/03
Report by the Board of Directors
11 Other Statutory Information (continued)
(e) No contingent liability or other liability has become enforceable or is likely to become enforceable within the
period of twelve months after the end of the financial year which, in the opinion of the directors, will or may
affect the ability of the Company or its subsidiary companies to meet their obligations as and when they fall
due.
(f) In the opinion of the directors, no item, transaction or event of a material and unusual nature has arisen in the
interval between the end of the financial year and the date of this report which is likely to affect substantially
the results of the operations of the Group or of the Company for the financial year in which this report is made.
12 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.
13 Auditors
The auditors, Ernst & Young, Certified Public Accountants, have expressed their willingness to accept
re-appointment.
On behalf of the Board,
KOH BOON HWEE
Chairman
CHEONG CHOONG KONG
Deputy Chairman/Chief Executive Officer
Dated this 21st day of May 2003