Facilities Rental. Facilities Rental for the year ending June 30th, 2006 is expected to be $656K, an increase over the results for 04/05 of $52K (9%) The increase is due to a moderate escalation in lease rates, new premises for the pilots, new warehouse for Stores and expansion of the reservation office in Miami. Note 20 – Communications Communication costs include local and long distance telephone charges, line charges for the reservation system, and messaging costs. Communication costs for the year ending June 30th, 2006 are expected to be $839K, a decrease over the results for 04/05 of $409K (33%). The decrease is due to moving the 1-800 number to Miami and stronger cost controls. Note 21 – Depreciation Depreciation expense is primarily derived from the operation of the three 737-200 aircraft owned by the airline. In addition, the company depreciates other non-aircraft assets including computers, office equipment, and other similar assets. Depreciation Expense for the year ending June 30th, 2006 is expected to be $1,764K, an increase over the results for 04/05 of $74K (4%) Note 22 – General & Administration General & Administrative expenses include postage, stationary, utilities, equipment rental, bank fees and other similar expenses. General & Administrative expenses for the year ending June 30th, 2006 is expected to be $1,476K, an decrease over the results for 04/05 of $386K (21%) Note 23 – Advertising & Promotion Advertising & Promotion expense for the year ending June 30th, 2006 is expected to be $840K, an increase over the results for 04/05 of $118K (16%) We have been informed by the DOT that the total advertising and promotion support budget for CAL 05/06 (including support for new routes) will be $750K.
Facilities Rental. Facilities Rental for the year ending June 30th, 2005 is expected to be $625K, an increase over the projection for 03/04 of $36K (6%). The increase is due to a moderate escalation in lease rates combined with the expansion of the City Ticket Office in Cayman. Note 20 – Communications Communication costs include local and long distance telephone charges, line charges for the reservation system, and messaging costs. Communication costs for the year ending June 30th, 2005 are expected to be $1,058K, an increase over the projection for 03/04 of $35K (3%). The increase is the net result of addition volume of activity (driven by additional flights, employees, and passengers) partially offset by reduced telecommunication rates in the Cayman Islands. Note 21 – Depreciation Depreciation expense is primarily derived from the operation of the three 737-200 aircraft owned by the airline. In addition, the company depreciates other non-aircraft assets including computers, office equipment, and other similar assets. Depreciation Expense for the year ending June 30th, 2005 is expected to be $1,536K, a decrease over the projection for 03/04 of $229K (13%). Note 22 – General & Administration General & Administrative expenses include postage, stationary, utilities, equipment rental, bank fees and other similar expenses. General & Administrative expenses for the year ending June 30th, 2005 is expected to be $1,804K, an increase over the projection for 03/04 of $181K (11%). Note 23 – Advertising & Promotion Advertising & Promotion expense for the year ending June 30th, 2005 is expected to be $722K, a decrease over the projection for 03/04 of $5K (0%). With the launch of at least one and possibly two additional destinations in 04/05 and the significant expected growth in passengers and flights, the airline requires a significant increase in direct cash investment in Advertising and Promotion. The budget for the airline for 04/05 does not reflect the required increase as it is agreed to be provided by the CIDOT.
Facilities Rental. Facilities Rental for the year ending June 30th, 2007 is expected to be $488K, a decrease over the results for 05/06 of $155K (24%) The decrease is the result of a number of leases that were vacated in Grand Cayman as the airline moves into the new headquarters building near the airport. Note that it is assumed that certain leases, such as CTO Res and the New Stores Warehouse, will be vacated prior to the maturity of the leases based upon negotiated settlements. Note 20 – Communications Communication costs include local and long distance telephone charges, line charges for the reservation system, and messaging costs. Communication costs for the year ending June 30th, 2007 are expected to be $885K, a decrease over the results for 05/06 of $383K (30%). The decrease, despite an increase in the number of passengers, is due to cost saving measures including:
Facilities Rental. Projected Facilities Rental for the year ending June 30, 2010 is $711K. Budgeted expenses for 2010/11 call for slight decrease to $661K. Note 20 – Communications Communication costs include local and long distance telephone charges, line charges for the reservation system, and messaging costs. Projected Communication costs for the year ending June 30, 2010 are $839K. A slight increase is expected in 2010/11 to $919K. CAYMAN AIRWAYS LIMITED NOTES TO THE FORECAST FINANCIAL STATEMENTS FOR THE YEAR ENDING 30 JUNE 2011 Note 21 – Depreciation Depreciation expense through the end of 2007/8 previously was driven largely by the operation of the 737-200 aircraft and the associated spares owned by the airline. This has changed by including only non-aircraft assets and spares associated with the 737-300. However, engine overhauls not reimbursed by the lessor are amortized over the remaining lease term so has a material impact on the expense. Projected Depreciation Expense for the year ending June 30, 2010 is $2,782K. The 2010/11 budget calls for depreciation in the amount of $2,179K.
Facilities Rental. For 90 days from the Closing Date, ----------------- Arris shall rent space at its facilities currently occupied by the DV Business to DVS to conduct the DV Business (the "Rental") at a rate of $6,000 per month. Thereafter, Arris shall rent such space to DVS at its cost, if requested by DVS.
Facilities Rental. The OED and MCA agree to evaluate and determine whether a portion of the premises OED has subleased at 0000 Xxxx Xxxx Xxxxxx, Xxxxxxxxx, Xxxxxxxx 00000 may be used as office space for employees of the MCA and employees of the Office of the Attorney General who support the MCA.
