Singapore Airlines 2016 Annual Report Download - page 177

24 Associated Companies (in $ million)
The Group
31 March
The Company
31 March
2016 2015 2016 2015
Investment in associated companies 913.8 931.6 540.9 481.8
Accumulated impairment loss (11.9) (9.4) (9.4) (9.4)
901.9 922.2 531.5 472.4
During the financial year:
1. The Company subscribed to 45% of the equity interest in Airbus Asia Training Centre Pte Ltd (“AATC”), which has been jointly established
with Airbus SAS, for a consideration of USD15 million ($20.7 million). AATC, which is considered an associated company of the Group,
provides flight training services on full-flight simulators for all in-production Airbus aircra types.
2. The Company injected $33.0 million in TATA SIA Airlines Limited (“TATA-SIA”). There was no change in the Group’s 49% equity stake in
TATA-SIA aer the capital injection.
3. The Company purchased an additional interest of 0.3% in Virgin Australia from the open market, for AUD5.3 million ($5.4 million), resulting
in the recognition of additional goodwill of $2.4 million.
4. SIAEC sold 9% of its interest in Safran Electronics Asia Pte Ltd (“SEA”) to Sagem Défense Sécurité (“Sagem”) for a cash consideration of
approximately $4.9 million. SIAEC’s residual interest in the shares of SEA is 40%, with the remaining 60% held by Sagem. The gain on sale
of the investment at the Group level is approximately $2.8 million.
5. SIAEC, together with Boeing, incorporated an entity, Boeing Asia Pacific Aviation Services Pte Ltd (“BAPAS”). SIAEC holds a 49% equity
stake in BAPAS and Boeing holds the remaining 51%. SIAEC assessed the classification of the investment and recorded it as an associated
company. SIAEC invested approximately $24.3 million in BAPAS.
6. SIAEC, together with Pratt & Whitney Ireland Holdings (“PWIH”), as members of PWA International Limited (“PWAI”), have resolved to
close PWAI in the year. SIAEC had since deemed the investment in PWAI to be liquidated. A loss on liquidation of $4.3 million has been
recognised as a non-operating item (Note 9).
7. Scoot incorporated Air Black Box Asia Pacific Pte Ltd (“ABBAS”) with paid up capital of $1, and subsequently injected $1.4 million into
ABBAS. Scoot currently holds 25% of the equity stake, while Nok Airlines Public Company Limited holds 25% and TOD Holdings Limited
holds the remaining 50%. ABBAS, which is considered an associated company, is principally engaged in marketing of internet-based
systems to airports, airlines, passengers and travel intermediaries.
Annual Report FY2015/16 175