Singapore Airlines 2015 Annual Report Download - page 183

34 Analysis of Capital Expenditure Cash Flow (in $ million)
The Group
FY2014/15 FY2013/14
Purchase of property, plant and equipment 2,632.0 2,593.0
Property, plant and equipment acquired under credit terms (31.8) (18.4)
Cash invested in capital expenditure 2,600.2 2,574.6
Purchase of intangible assets 30.9 30.0
Intangible assets acquired under credit terms – (0.3)
Cash invested in purchase of intangible assets 30.9 29.7
35 Capital and Other Commitments (in $ million)
(a) Capital expenditure commitments
The Group and the Company have commitments for capital expenditure. Such commitments aggregated $24,690.7 million
(2014: $20,780.5 million) for the Group and $17,155.7 million (2014: $17,561.1 million) for the Company. The commitments
relate principally to the acquisition of aircra fleet and related equipment.
In addition, the Group’s share of joint venture companies’ commitments for capital expenditure totalled $24.2 million
(2014: $2.5 million).
(b) Operating lease commitments
As lessee
Aircra
The Company has four B777-200ER, two B777-300, three B777-300ER, 30 A330-300 and nine A380-800 aircra under
operating leases with fixed rental rates. Under five of the aircra lease agreements, the rentals will be adjusted if one-
month LIBOR exceeds 6.50% per annum.
The original lease terms range from five to 13 years. In four of the aircra lease agreements, the Company holds options
to extend the lease for a further maximum period of five years. In three other aircra lease agreements, the Company
holds options to extend the leases for a further maximum period of three years and in five 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. 12 leases provide the option to terminate the
lease two years in advance of the lease expiry date. Another 11 other leases have no option for renewal. Sub-leasing is
allowed under all the lease arrangements.
Tiger Group has 29 A320-200 aircra, two A319 aircra and two spare engines under operating leases. The original lease
terms on the aircra are for 12 years. None of the operating lease agreements confer on an option to purchase the related
aircra. Sub-leasing is allowed under all the lease arrangements, subject to certain terms and conditions stated in the
agreements.
SIA Cargo has two B747-400F aircra under operating lease with fixed rental rates. The lease terms range from 10 to 11
years. In one of the aircra lease agreements, SIA Cargo holds the option to extend the lease for a further maximum period
of two years. For the other agreement, there is no option for renewal. Sub-leasing is allowed under the lease arrangements.
Singapore Airlines | Annual Report FY2014/15 |181