Singapore Airlines 2016 Annual Report Download - page 190

Notes to the Financial Statements
31 March 2016
35 Capital and Other Commitments (in $ million) (continued)
(b) Operating lease commitments
As lessee
Aircra
The Company has one B777-200ER, one B777-300, three B777-300ER, 29 A330-300 and nine A380-800 aircra under operating leases at
fixed rental rates. In five of the A380 lease agreements, lease rentals will be adjusted if the one-month LIBOR exceeds 6.50% per annum.
The original lease terms range from five to 13 years.
For flexibility in fleet planning, most leases include extension options, except for seven A330, one B777-200ER and one B777-300 leases.
The extension options provide for lease renewals up to a maximum of five years. In addition, there are 15 early termination options that
allow termination of the leases two years prior to original lease expiries. Sub-leasing is allowed under all the lease arrangements.
SIA Cargo has two B747-400F aircra under operating leases with fixed rental rates. The lease terms range from 10 to 11 years. In one of
the aircra lease agreements, SIA Cargo holds an 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.
SilkAir has three A319-100s, eight A320-200s, and nine B737-800s under operating leases with fixed rental rates. The original lease terms
for the three A319s range from 6.9 to 11.5 years, with SilkAir holding options to extend the leases up to a maximum of three years. The
original lease terms for the eight A320s range from 6.6 to 11.8 years and SilkAir holds options to extend the leases for two to five years.
The original lease terms for the nine B737s range from 9.8 to 10.5 years, which SilkAir holds options to extend the leases up to a maximum
of four years. None of the operating lease agreements confer on SilkAir an option to purchase the related aircra. Sub-leasing is allowed
under all the lease arrangements.
Tiger Group has 29 A320 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 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.
Future minimum lease payments under non-cancellable operating leases are as follows:
The Group
31 March
The Company
31 March
2016 2015 2016 2015
Not later than one year 820.1 928.5 609.4 721.0
Later than one year but not later than five years 2,438.5 2,670.2 1,554.5 1,879.3
Later than five years 1,289.7 1,670.2 631.7 956.3
4,548.3 5,268.9 2,795.6 3,556.6
Engines
The Company has operating lease agreements for four GE90-115B engines and 11 Trent 800 engines with fixed rental rates. The basic
lease term for each engine varies from four to six years with extension options.
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