Singapore Airlines 2012 Annual Report Download - page 169

167ANNUAL REPORT 2011/2012
Notes to the Financial Statements
31 March 2012
35 Capital and Other Commitments (in $ million) (continued)
(b) Operating lease commitments (continued)
As lessor
Aircraft
During the previous financial year, the Company entered into a commercial aircraft lease for 6 B777-200ER aircraft.
This non-cancellable lease is for a basic lease term of 2 years and 6 months for the first 3 aircraft and 2 years for the
other 3 aircraft. During the financial year, the lease term for 4 of the aircraft was extended for periods ranging from
1 month to 8 months. The lease rental is fixed throughout the lease term for all 6 aircraft.
SIA Cargo has previously entered into a commercial aircraft lease. This non-cancellable lease has a remaining lease
term of 3 years and 5 months. The lease rental is fixed throughout the lease term.
Future minimum lease receivables under non-cancellable operating leases are as follows:
The Group The Company
31 March 31 March
2012 2011 2012 2011
Not later than one year 96.1 122.0 83.8 109.7
Later than one year but not later than five years 79.4 101.9 49.9 60.1
175.5 223.9 133.7 169.8
36 Contingent Liabilities (in $ million)
(a) Flight SQ006
There were 83 fatalities among 179 passengers and crew members aboard the Boeing 747 aircraft, Flight SQ006,
that crashed on the runway at the Chiang Kai Shek International Airport, Taipei en route to Los Angeles on 31 October
2000. With the exception of one outstanding passenger claim, all the other lawsuits relating to the crash that were
commenced against the Company by both the crew members and the other passengers or their next-of-kin have
been settled. These claims are covered by the insurance coverage maintained by the Company and therefore have
no material impact on its financial position.
(b) Cargo: Investigations by Competition Authorities and Civil Class Actions
In 2006 and thereafter, SIA Cargo and the Company were among several airlines that received notice of investigations
by competition authorities in the US, European Union, Australia, Canada, New Zealand, South Africa, South Korea and
Switzerland as to whether surcharges, rates or other competitive aspects of air cargo service were lawfully determined
(the “air cargo issues”).
On 8 February 2011, SIA Cargo confirmed its acceptance of a plea bargain offered by the United States Department
of Justice (USD48.0 million or $62.5 million). This amount has been reflected as exceptional items in the Group’s
accounts in FY2010-11. The plea agreement has brought the Department of Justice’s air cargo investigations in the
United States to a close for SIA Cargo.