CzeCh airlines - České aerolinie

Notes to the Consolidated Financial Statements
For the Year ended 31 December 2010
annual report 2010 | 137
27. CONTINGENT ASSETS AND LIABILITIES
28. CASH FLOW STATEMENT
In 2008, the Parent Company concluded an agreement on future contracts for
establishing the easement relating to the land in the Ruzyně airport area in the total
amount of CZK 149,630 thousand. The conclusion of the contracts for the establishment
of the easement and also the settlement of the purchase price are linked to the
fulfilment of legal acts in the future (for example, a legally valid building permit).
Contingent liabilities are incurred by the Group from the activities disclosed in
Notes 5 and 26 and from the Group’s impact on the environment.
The Group applies an environmental policy under which the impacts of its activities
on the environment are monitored specifically in the following areas:
▶ treatment of solid and liquid waste;
▶ air pollution; and
▶ noise from airline activities.
The Group is a defendant in several legal disputes. The Group’s Management believes
that the outcome of these suits will not have a material effect. The Group has
a provision for some legal disputes (Note 11). The Group is additionally dealing with
certain of its receivables from bankrupt debtors through the court system.
There are guarantees drawn in favour of the Group especially to secure cash received
from sales of traffic documents by agencies and to secure future repairs connected
with delivered construction contracts. The Group further issued bank guarantees
to secure customs liabilities and other parties related to operating activities.
The Group has insured its assets including aircraft and liability for damage.
The Group is not aware of any breaches of applicable standards that may trigger
significant sanctions or any other charges.
The Group’s Management is not aware of any other significant unrecorded contingent
liabilities as at 31 December 2010 and 2009.
The Company has prepared the cash flow statement using the indirect method.
Cash equivalents represent short-term liquid investments, which are readily convertible
for a known amount of cash, i.e. all short-term financial assets.
Cash flows from operating, investment and financial activities presented in the cash
flow statement are not offset.
29. SUBSEQUENT EVENTS
As of 19 January 2011, the Government Resolution decided to privatize a part of
assets of Správa Letiště Prague, s.p. by contribution to Český Aeroholding, a.s. The
Company was established as of 11 March 2011.
As of 1 January 2011, the Company transferred the activities and employees of the
Customs Department and the Waste and Water Management Department to its
subsidiary, Czech Airlines Technics, a.s.
As of 1 January 2011, the Company transferred a part of activities and employees of
the Revenue Accounting Department to its subsidiary, CSA Services, s.r.o.
As of 1 January 2011, IT employees were transferred to Letiště Prague, a.s.
In January 2011, the Board of Directors of HOLIDAYS Czech Airlines, a.s. decided to
lease two Airbus A320 aircraft in the year 2011.
In January 2011, the Company sold the B737 aircraft. The revenues amounted to
CZK 128,026 thousand and resulted in a carrying amount of CZK 110,059 thousand.
As of 15 February 2011, the Commercial Register deleted Mr. Tomáš Uvíra, a member
of the Company’s Supervisory Board, whose membership in the Supervisory Board
ended as of 31 January 2011.