CzeCh airlines - České aerolinie

NOTES TO THE FINANCIAL STATEMENTS
For the Year Ended 31 December 2010
annual report 2010 | 64
Significant Fixed Assets Disposals in 2010
The net book value of tangible fixed assets transferred to the subsidiaries as nonmonetary
contribution during 2010 is mentioned in Note 28. The net book value of
tangible fixed assets transferred as part of the Company during 2010 is mentioned in
Note 28.
Significant Fixed Assets Disposals in 2009
Revenue from the sale
CZK’000
Net book value
CZK’000
Hangar F including land 815,886 129,648
Rotables 402,142 557,093*
6 aircraft Boeing B737 1,186,039 1,005,313
Land around the APC building 68,894 53,325
Land around Hangar F 34,089 34,089
Land under Hangar G 89,025 89,025
*before allowance for diminution in value
Revenue from the sale
CZK’000
Net book value
CZK’000
Aircraft Airbus A310 247,125 1,886
APC building including land 606,710 437,910
Advances
The advances paid in the amount of CZK 503,145 thousand as of 31 December 2010
(as of 31 December 2009: CZK 132,376 thousand) represent advances for 8 Airbus
A319 aircraft, which will be delivered in 2011–2014. The Company has an option for
the purchase of these aircraft. The prepayments are classified as unrefundable and
they are recalculated using a historical foreign exchange rate.
thousand relates to the expiry of the finance leasing of three Boeing B737 aircraft and
their addition to the assets of the Company.
Allowance for Diminution in Value
The Company creates an allowance for assets under construction – technical
improvement of aircraft under finance lease, when the lessor did not approve the
depreciation thereof. The Company further creates an allowance if the carrying value
of an asset is greater than its estimated recoverable value; the carrying value is then
reduced by an allowance to the recoverable value.
The fair value of aircraft purchased by the Company after the expiry of the finance
leases is significantly higher than their carrying amount.
Pledged Fixed Assets
The Company has pledged fixed assets as follows:
At 31 December 2010:
Net book value
CZK’000
Value of
secured liability
CZK’000
Full Flight Simulator B737 48,012
Flight Simulator MFTD 320 20,073 20,073
*The pledges to secure the loan liability are activated only in case the Company is in default.
Creditor*
Middle-term operational
loan from
UniCredit Bank
Middle-term operational
loan from
UniCredit Bank
The advances in the amount of CZK 0 thousand as of 31 December 2010 (as of
31 December 2009: CZK 990,316 thousand) related to Boeing B737 aircraft are not refinanced
by a finance lease and became part of the acquisition costs of the respective
aircraft at the expiry of the finance lease, when the aircraft became the property of the
Company. The decrease of the advances of CZK 990,316 thousand in 2010 relates to
the expiry of financial leasing of seven Boeing B737 and its addition to the assets of
the Company. The decrease in the advances in 2009 in the amount of CZK 287,095