Singapore Airlines 2015 Annual Report Download - page 145

10 Exceptional Items (in $ million) (continued)
During the financial year, Tiger Airways became a subsidiary company, resulting in the Group recording a gain of $119.8 million
which arose from the remeasurement of the Company’s retained interest in Tiger Airways at fair value.
SIA Cargo recognised an impairment loss of $63.6 million on its long-term investment of an equity stake of 16% in China Cargo
Airlines to fully write down its carrying value, due to negative shareholders’ equity, and continued operating losses incurred.
The Company recorded an additional gain of $7.3 million on the sale of Virgin Atlantic Limited arising from certain
post-closing adjustments.
SIA Cargo recorded an additional impairment loss of $7.0 million on two surplus freighters that have been removed from the
operating fleet, based on the sale price of the freighters.
Singapore Flying College (“SFC”) recognised a writeback of $2.1 million on its previously impaired assets, in relation to the closure
of the college’s operations in Maroochydore, Australia.
In respect of the air cargo investigations by competition authorities, SIA Cargo’s appeal against the Seoul High Court judgment to
the Supreme Court was partially successful. As a result, in September 2014, the South Korean Fair Trade Commission refunded
KRW793.2 million ($1.0 million) to SIA Cargo, being part of the fine amount paid previously.
With regard to anti-trust litigation in the United States, SIA entered into a settlement agreement (with no admission of liability)
with the plaintis in August 2014 which is subject to Court approval. In accordance with the agreement, SIA has made payment
of USD9.2 million ($11.4 million) into an escrow account pending court approval.
In March 2015, SIA Cargo reached a settlement with a customer to resolve all pending and potential civil damage claims regarding
the air cargo issues. Arising from this settlement, a provision of USD10.1 million ($13.7 million) was recorded.
During the previous financial year, the Company completed the sale of its 49% stake in Virgin Atlantic Limited for a consideration
of USD361.0 million ($455.3 million). Under the equity method, the Group has previously accounted for $116.6 million in the
reserves, which have been oset against the net sales proceeds (aer certain post-closing adjustments) of $488.1 million,
resulting in a gain of $371.5 million.
SIA Cargo recorded an impairment loss of $293.4 million on four surplus freighters that have been removed from the operating fleet.
SFC recognised an impairment loss of $29.4 million on its assets, with the closure of the college’s operations in Maroochydore,
Australia.
SIA Cargo reached a settlement with the plaintis in the United States air cargo class action for an amount of USD62.8 million
($78.3 million). The settlement is without admission of any wrongdoing or liability. The settlement is subject to the approval of
the United States District Court.
In a Swiss air cargo competition law case, the Swiss Competition Commission imposed a fine of CHF1.7 million ($2.3 million).
SIA Cargo and the Company have filed an appeal to the Swiss Federal Administrative Tribunal seeking its annulment.
Without admitting any liability, SIA Cargo and the Company reached a settlement with the class action plaintis in Australia
whereby SIA Cargo agreed to pay AUD5.6 million ($6.4 million) to resolve all liability of SIA Cargo and the Company as concerns
the class action lawsuit filed in Australia.
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