SIA REVISES ITS AIRCRAFT DEPRECIATION

Singapore Airlines Limited (SIA) today announced that it is revising the number of years over which its aircraft are depreciated.

In prior years, passenger aircraft, spares and spare engines were depreciated over 10 years to 20% residual value. The new depreciation period will be 15 years to 10% residual value. The last time SIA revised its depreciation rates and residual values was during the financial year ending 31 March 1990.

The decision was taken to revise the depreciation rates after a benchmark study of SIA’s fleet management policies and operating characteristics and of the rates applied by other major airlines around the world. The change will align SIA’s depreciation rates more closely with those of major international airlines and facilitate comparison of SIA’s results with the others. SIA’s policy of operating a young and modern fleet will remain unaffected.

The estimated reduction in depreciation charge is estimated to amount to $265 million for the financial year ending 31 March 2002. The new depreciation rates will not result in retrospective adjustments to previously published financial statements.

SIA has a fleet of 89 passenger airplanes as of 17 August 2001.