Singapore Airlines 2006 Annual Report Download - page 129

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127
Singapore Airlines Annual Report 05/06
31 Analysis of Capital Expenditure Cash Flow (in $ million)
The Group
2005-06 2004-05
Assets acquired under credit terms at 1 April 2.7 29.8
Additions to fi xed assets 3,093.1 4,071.3
Less : Progress payments transferred to fi xed assets (1,034.3) (2,003.2)
Purchase of fi xed assets 2,058.8 2,068.1
Less: Assets acquired under credit terms at 31 March (2.7) (2.7)
Cash invested in capital expenditure 2,058.8 2,095.2
32 Capital and Other Commitments (in $ million)
(a) Capital expenditure commitments
The Group and the Company have commitments for capital expenditures. Such commitments aggregated $8,971.5 million
(2005: $12,855.0 million) for the Group and $8,205.7 million (2005: $11,551.5 million) for the Company.
In addition, the Group’s share of joint venture companies’ commitments for capital expenditures totalled $682.7 million
(2005: $234.9 million).
The commitments relate principally to the acquisition of aircraft fl eet and related equipment.
(b) Operating lease commitments
As lessee
Aircraft
The Company has 13 B747-400, three B777-200 and two B777-300 aircraft under operating leases with fi xed rental rates.
The original lease terms range from 4.7 to 10.5 years. In 13 of the aircraft lease agreements, the Company holds options
to extend the leases for a further maximum period of two years. None of the operating lease agreements confer on the
Company an option to purchase the related aircraft. Sub-leasing is allowed under all the lease arrangements.
Singapore Airlines Cargo Pte Ltd (“SIA Cargo”) has three B747-400F aircraft under operating lease with fi xed rental rates.
The lease terms range from 10 to 11 years. In one of the aircraft lease agreements, SIA Cargo holds the option to extend
the lease for a further maximum period of two years. For the other agreement, there is no option for renewal. Sub-leasing
is allowed under all the lease arrangements.
SilkAir (Singapore) Private Limited (“SilkAir”) has two A320-232 and two A319-132 aircraft under operating lease with fi xed
rental rates. The lease term for the two A319-132 aircraft is fi ve-and-a-half years, which SilkAir holds an option to extend
the lease for one year, and the lease term for the two A320-232 aircraft is four and four-and-a-half years respectively, which
SilkAir holds an option to extend the leases for four years. None of the operating lease arrangements confer on SilkAir the
option to purchase the related aircraft. Sub-leasing is allowed under all the lease arrangements.
NOTES TO THE FINANCIAL STATEMENTS
31 March 2006