Singapore Airlines 2014 Annual Report Download - page 183

181
ANNUAL REPORT FY2013/14
35 Capital and Other Commitments (in $ million)
(a) Capital expenditure commitments
The Group and the Company have commitments for capital expenditure. Such commitments aggregated $20,780.5
million (2013: $13,255.8 million) for the Group and $17,561.1 million (2013: $9,770.4 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 $2.5 million
(2013: $23.7 million).
(b) Operating lease commitments
As lessee
Aircraft
The Company has three B777-200, three B777-200ER, two B777-300, 26 A330-300 and nine A380-800 aircraft
under operating leases with fixed rental rates. Under five 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 five to 10.5 years. In four of the aircraft lease agreements, the Company holds
options to extend the lease for a further maximum period of five years. In five other aircraft lease agreements, the
Company holds options to extend the leases for a further maximum period of three years and in 10 others, the Company
holds the options to extend the leases for a further maximum period of two years. Another 13 lease agreements provide
the Company the options to extend the leases for a further period of one year. One lease has the option to extend by
half a year while another seven leases provide the option to terminate the lease two years in advance of the lease expiry
date. Only three other leases have no option for renewal. Sub-leasing is allowed under all the lease arrangements.
SIA Cargo has three B747-400F aircraft under operating lease 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 two years. For the other two agreements, there is no option for renewal. Sub-leasing is allowed under the
lease arrangements.
SilkAir has 11 A320-200s and three A319-100s under operating leases with fixed rental rates. The original lease
terms for the three A319-100s range from 6.9 to 11.5 years, which SilkAir holds options to extend the leases up to
a maximum of three years. The original lease terms for the 11 A320-200s range from four to 11.8 years and SilkAir
holds options to extend the leases for two to five 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.
Future minimum lease payments under non-cancellable operating leases are as follows:
The Group The Company
31 March 31 March
2014 2013 2014 2013
Not later than one year 717.0 641.6 632.8 573.6
Later than one year but not later than five years 2,084.9 1,964.4 1,842.4 1,813.9
Later than five years 888.2 866.3 791.0 791.0
3,690.1 3,472.3 3,266.2 3,178.5