CzeCh airlines - České aerolinie

NOTES TO THE FINANCIAL STATEMENTS
For the Year Ended 31 December 2010
annual report 2010 | 91
29. CONTINGENT ASSETS AND LIABILITIES
In 2008, the 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 Company from the activities disclosed in
Notes 5 and 27 and from the Company’s impact on the environment.
The Company 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 Company is a defendant in several legal disputes. The Company’s Management
believes that the outcome of these suits will not have a material effect. The Company
has a provision for some legal disputes (Note 12). The Company is additionally dealing
with certain of its receivables from bankrupt debtors through the court system.
The Company’s Management is not aware of any other significant unrecorded contingent
liabilities as at 31 December 2010 and 2009.
30. CASH FLOW STATEMENT
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.
31. SUBSEQUENT EVENTS
As of 19 January 2011, the Government Resolution decided to privatize part of assets
of the Company 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.
There are guarantees drawn in favour of the Company especially to secure cash
received from sales of traffic documents by agencies and to secure future repairs
connected with delivered construction contracts. The Company further issued bank
guarantees to secure customs liabilities and other parties related to the operating
activities of the Company.
The Company guarantees the liabilities of its subsidiaries in the amount of CZK
8,000 thousand (2009: CZK 3,000 thousand and EUR 200 thousand).
The Company has insured its assets including aircraft and liability for damage.
The Company is not aware of any breaches of applicable standards that may trigger
significant sanctions or any other charges.
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 Company sold the B737 aircraft. The revenues were in amount of
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.
As of 15 February 2011, the Company’s Board of Directors decided to transfer the
landing gears division to the Czech Airlines Landing Gears, s.r.o. subsidiary, which