Singapore Airlines 2006 Annual Report Download - page 137

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135
Singapore Airlines Annual Report 05/06
36 Related Party Transactions (in $ million)
For the purposes of these fi nancial statements, parties are considered to be related to the Group if the Group has the ability,
directly or indirectly, to control the party or exercise signifi cant infl uence over the party in making fi nancial and operating
decisions, or vice versa, or where the Group and the party are subject to common control or common signifi cant infl uence.
Related parties may be individuals or other entities.
In addition to the related party information disclosed elsewhere in the fi nancial statements, these were the following signifi cant
related party transactions which were carried out in the normal course of business on terms that prevail in arm’s length
transactions during the fi nancial year:
The Group The Company
2005-06 2004-05 2005-06 2004-05
Purchases of services from associated companies 235.3 40.6 225.0 38.9
Services rendered to associated companies (28.9) (24.7) (22.3) (16.7)
Purchases of services from joint venture companies 143.2 0.1 143.2 0.1
Services rendered to joint venture companies (85.2) (5.5) (78.2) (0.9)
Directors’ and key executives’ remuneration of the Company
The Company
2005-06 2004-05
Directors
Salary, bonuses and other costs 3.6 2.3
CPF and other defi ned contributions * *
Share–based compensation expense 0.5 0.4
4.1 2.7
Key executives (excluding executive directors)
Salary, bonuses and other costs 2.4 1.8
CPF and other defi ned contributions * *
Share-based compensation expense 0.7 0.5
3.1 2.3
* Amount less than $0.1 million
Share options granted to and exercised by directors and key executives of the Company are as follows:
Aggregate Aggregate
options options
granted since exercised since Aggregate
Exercise price commencement commencement options
Options for options of scheme of scheme outstanding
granted during granted during to end of to end of at end of
financial year financial year financial year financial year Options financial year
Name of participant under review under review under review under review lapsed under review
Chew Choon Seng 240,000 $11.28 1,074,000 – – 1,074,000
LG Bey Soo Khiang 152,000 $11.28 722,000 114,000 – 608,000
Huang Cheng Eng 135,000 $11.28 717,000 90,750 – 626,250
37 Subsequent Events
On 26 April 2006, the Company announced an increase of the fuel surcharge on tickets sold from 15 May 2006. The
adjustments will offer partial relief of higher operating costs arising from persistently high price of jet fuel, which is hovering
around US$90 per barrel, as compared to US$80 per barrel when the surcharge was last revised in September 2005.
The Company had, on 2 May 2006, announced that it has sold, then leased back, on an operating lease basis, three Boeing
777-300 aircraft. The aircraft are each leased to the Company for approximately seven-and-a-half years, including options to
extend.
NOTES TO THE FINANCIAL STATEMENTS
31 March 2006