Singapore Airlines 2012 Annual Report Download - page 167

165ANNUAL REPORT 2011/2012
Notes to the Financial Statements
31 March 2012
33 Trade and Other Creditors (in $ million)
Trade and other creditors are non-interest bearing. As at 31 March 2012, 10.2% (2011: 8.7%) of trade and other creditors
were held in USD by the Group. Included in trade and other creditors are amounts owing to related parties of $137.3
million (2011: $110.0 million) and $99.2 million (2011: $76.5 million) for the Group and Company respectively.
34 Analysis of Capital Expenditure Cash Flow (in $ million)
The Group
฀ ฀ ฀ ฀ ฀ ฀ ฀ 2011-12฀ 2010-11
Purchase of property, plant and equipment 1,645.8 1,234.4
Property, plant and equipment acquired under credit terms (4.6) (10.6)
Cash invested in capital expenditure 1,641.2 1,223.8
35 Capital and Other Commitments (in $ million)
(a) Capital expenditure commitments
The Group and the Company have commitments for capital expenditure. Such commitments aggregated $7,511.4
million (2011: $6,556.6 million) for the Group and $7,042.2 million (2011: $6,015.7 million) for the Company.
The commitments relate principally to the acquisition of aircraft fleet and related equipment.
In addition, the Group’s share of joint venture companies’ commitments for capital expenditure totalled $0.6 million
(2011: $1.0 million).
(b) Operating lease commitments
As lessee
Aircraft
The Company has 3 B777-200, 3 B777-200ER, 3 B777-300, 19 A330-300 and 7 A380-800 aircraft under operating
leases with fixed rental rates. Under 5 of the aircraft lease agreements, the rentals will be adjusted if one-month LIBOR
exceeds 6.50% per annum.
The original lease terms range from 5 to 10.5 years. In 2 of the aircraft lease agreements, the Company holds options
to extend the lease for a further maximum period of 5 years. In 5 other aircraft lease agreements, the Company holds
options to extend the leases for a further maximum period of 3 years and in 24 others, the Company holds the options
to extend the leases for a further maximum period of 2 years. Sub-leasing is allowed under all the lease arrangements.
SIA Cargo has 3 B747-400F aircraft under operating leases with fixed 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 2 years. For the other 2 agreements, there is no option for renewal. Sub-leasing is allowed under
all the lease arrangements.
SilkAir (Singapore) Private Limited (“SilkAir”) has 6 A320-200 and 3 A319-100 aircraft under operating leases with
fixed rental rates. The original lease terms for the 3 A319-100s range from 6.9 to 11.5 years, which SilkAir holds
options to extend the leases up to a maximum of 3 years. The original lease terms for the 6 A320-200s range from 4
to 11.8 years and SilkAir holds options to extend the leases for 2 to 5 years. None of the operating lease agreements
confer on SilkAir an option to purchase the related aircraft. Sub-leasing is allowed under all the lease arrangements.