135
AirAsia X Berhad • Annual Report 2014
NOTES TO THE FINANCIAL STATEMENTS
AS AT 31 DECEMBER 2014
3
CRITICAL ACCOUNTING ESTIMATES AND JUDGMENTS (CONTINUED)
(iii)
Impairment of investments in associate and joint venture
The investments in associate and joint venture are reviewed for impairment whenever events or changes in circumstances indicate that the carrying value may not
be recoverable. Significant judgement is required in the estimation of the present value of future cash flows generated by the associate and joint venture, which
involves uncertainties and are significantly affected by assumptions used and judgement made regarding estimates of future cash flows and discount rates. Changes
in assumptions can significantly affect the results of the Group’s test for impairment of investments in associate and joint venture.
(iv)
Sales and leaseback
Judgement is required in the initial classification of leases as either operating leases or finance leases and, in respect of finance leases, determining the appropriate
discount rate implicit in the lease to discount minimum lease payments. The Company had accounted for the aircraft under the sale and leaseback arrangements as
“operating lease” as the Company operates, but does not own, these aircraft. The Company has no right or obligation to acquire these aircraft at the end of the relevant
lease terms. The present value of the minimum lease payments determined at the inception of the lease was not substantially all of the aircraft’s fair value and the
lease term under the arrangement is not a major part of the economic life of the aircraft.
4
REVENUE
Group
Company
2014
2013
2014
2013
RM’000
RM’000
RM’000
RM’000
Scheduled flights
1,630,119
1,404,651
1,630,119
1,404,651
Charter flights
171,633
107,001
171,633
107,001
Fuel surcharge
344,133
253,839
344,133
253,839
Freight services
113,878
90,018
113,878
90,018
Ancillary revenue
586,485
452,494
586,485
452,494
Management fees
1,143
347
-
-
Aircraft operating lease income
89,336
-
89,336
-
2,936,727
2,308,350
2,935,584
2,308,003
Ancillary revenue includes assigned seat, cancellation, documentation and other fees, and the on-board sale of meals and merchandise.
