Singapore Airlines 2008 Annual Report Download - page 145

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Singapore Airlines Annual Report 2007-08
143
35 Capital and Other Commitments (in $ million)
(a) Capital expenditure commitments
The Group and the Company have commitments for capital expenditures. Such commitments aggregated $8,996.2
million (2007: $10,963.6 million) for the Group and $8,138.1 million (2007: $10,014.5 million) for the Company.
In addition, the Group’s share of joint venture companies’ commitments for capital expenditures totalled $1.5 million
(2007: $6.2 million).
The commitments relate principally to the acquisition of aircraft fleet and related equipment.
(b) Operating lease commitments
As lessee
Aircraft
The Company has eleven B747-400, one B777-200, two B777-200ER, six B777-300 and three A380 aircraft under
operating leases with fixed rental rates. Under the A380 lease agreement, the rentals will be adjusted if one-month
LIBOR exceeds 6.5% per annum. The original lease terms range from 4.7 to 10.5 years. In eight 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.
SIA Cargo has five B747-400F aircraft under operating leases with fixed rental rates. The lease terms range from 5
to 11 years. In two of the aircraft lease agreements, the operating leases are for a period of five years, with early
termination rights at the end of Year 3 and Year 4. 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 two agreements, there is no option for
renewal. Sub-leasing is allowed under all the lease arrangements.
SilkAir (Singapore) Private Limited (“SilkAir”) has four A320-232 and two A319-132 aircraft under operating leases with
fixed rental rates. The lease terms for the two A319-132 aircraft are 5.5 years, which SilkAir holds an option to extend
the leases for one year. The lease terms for two of the A320-232 aircraft are 4 and 4.5 years, which SilkAir holds
an option to extend the leases for four years. The lease terms for the other two of the A320-232 aircraft are 7.5 and
8.5 years, which SilkAir holds an option to extend the leases for one year. 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.
Future lease payments under non-cancellable operating leases are as follows:
The Group The Company
31 March 31 March
2008 2007 2008 2007
Not later than one year 447.0 438.8 349.7 334.5
Later than one year but not later than five years 1,126.2 1,102.2 882.7 780.9
Later than five years 632.8 360.8 515.9 175.0
2,206.0 1,901.8 1,748.3 1,290.4
NOTES TO THE FINANCIAL STATEMENTS
31 March 2008