Annual Report cb smile - Jet Airways
Annual Report cb smile - Jet Airways
Annual Report cb smile - Jet Airways
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Significant Accounting Policies and Notes forming part of Consolidated Accounts (contd.)<br />
iii) During the year the Holding Company has given four (4) owned Aircraft on Dry sub lease. In the previous<br />
Holding Company has given six (6) aircraft on wet lease [Four (4) owned and Two (2) leased] and One<br />
(1) aircraft on dry sub-lease. The future minimum lease income in respect of non-cancelable period which,<br />
as at 31st March, 2010 is as follows:<br />
Amount (Rs. in lakhs)<br />
Total Lease<br />
Aircraft Income<br />
Less than 1 year (-) 25,054<br />
((-)17,377)<br />
Between 1 and 5 years (-) 10,545<br />
(Nil)<br />
More than 5 years -<br />
(Nil)<br />
Grand Total (-) 35,599<br />
((-)17,377)<br />
(Figures in brackets indicates 31 st March, 2009 figures)<br />
The Salient features of Wet Lease agreement are:<br />
· Operational control and maintenance of aircraft remains the responsibility of the Company. The aircraft<br />
remains on Indian registry and is operated with the Company’s crew.<br />
· Monthly rentals are received in form of fixed and variable rental. Variable Lease Rentals are receivable on<br />
a pre determined rate on the basis of additional flying hours.<br />
· The wet leases are non-cancelable.<br />
The Salient features of Dry Lease agreement are:<br />
· In this leasing arrangement aircraft is leased without insurance and crew.<br />
· Monthly rentals paid in form of fixed and variable rental. Variable Lease Rentals are payable on a pre<br />
determined rate payable on the basis of actual flying hours. Additionally, the predetermined rates of<br />
Variable Rentals are subject to the annual escalation as stipulated in the respective leases.<br />
· The Lessee neither has an option to buyback nor does it generally have an option to renew the leases.<br />
· The dry leases are non-cancelable.<br />
Details of the owned aircraft given on non-cancelable Dry lease / Wet lease is as under:<br />
Amount (Rs. in lakhs)<br />
Details of Leased Assets (Aircraft): 2009-10 2008-09<br />
Cost of acquisition 273,783 309,014<br />
Accumulated Depreciation 41,584 23,748<br />
iv)<br />
Depreciation of Rs.16,690 lakhs (Previous Year Rs.15,807 lakhs) has been debited to Profit and Loss<br />
Account on the above leased assets.<br />
The variable lease rental income recognized Rs. 5,863 lakhs (Previous Year Nil).<br />
v) The lease rental expense recognised Rs. 117,025 lakhs (Previous Year Rs. 114,652 lakhs). It includes Nil<br />
(Previous Year Rs. 5,977 lakhs) recognized as lease rental expenses on account of sale and lease back of<br />
aircraft.<br />
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