| 18 | PROPERTY, PLANT AND EQUIPMENT |
| Aircraft, engines and | ||||||||||||||||||||||||
| flight equipment | Other | |||||||||||||||||||||||
| Held under | property, plant | Construction | ||||||||||||||||||||||
| Owned | finance leases | Buildings | and equipment | in progress | Total | |||||||||||||||||||
| RMB million | RMB million | RMB million | RMB million | RMB million | RMB million | |||||||||||||||||||
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31 December 2017 |
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At 31 December 2016 and at 1 January 2017: |
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Cost |
99,653 | 97,064 | 8,324 | 8,201 | 2,398 | 215,640 | ||||||||||||||||||
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Accumulated depreciation and impairment |
(34,914 | ) | (19,890 | ) | (2,450 | ) | (5,206 | ) | — | (62,460 | ) | |||||||||||||
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Net carrying amount |
64,739 | 77,174 | 5,874 | 2,995 | 2,398 | 153,180 | ||||||||||||||||||
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At 1 January 2017, net of accumulated depreciation and impairment |
64,739 | 77,174 | 5,874 | 2,995 | 2,398 | 153,180 | ||||||||||||||||||
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Additions |
3,659 | 8,277 | 276 | 808 | 2,688 | 15,708 | ||||||||||||||||||
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Disposals |
(656 | ) | (264 | ) | (1 | ) | (103 | ) | — | (1,024 | ) | |||||||||||||
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Transfer from construction in progress |
— | — | 1,019 | 18 | (1,037 | ) | — | |||||||||||||||||
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Transfer from advanced payments on acquisition of aircraft (note 21) |
1,701 | 13,378 | — | — | — | 15,079 | ||||||||||||||||||
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Transfer from investment properties (note 19) |
— | — | 9 | — | — | 9 | ||||||||||||||||||
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Transfer to investment properties (note 19) |
— | — | (2 | ) | — | — | (2 | ) | ||||||||||||||||
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Assets included in held for sale |
— | — | — | (2 | ) | — | (2 | ) | ||||||||||||||||
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Transfer to other non-current assets |
— | — | — | — | (327 | ) | (327 | ) | ||||||||||||||||
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Depreciation provided during the year |
(6,154 | ) | (6,302 | ) | (298 | ) | (613 | ) | — | (13,367 | ) | |||||||||||||
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Disposal of a subsidiary (note 43) |
(199 | ) | (1,220 | ) | (375 | ) | (208 | ) | (17 | ) | (2,019 | ) | ||||||||||||
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Impairment |
(379 | ) | — | — | — | — | (379 | ) | ||||||||||||||||
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Transfers |
6,283 | (6,283 | ) | (24 | ) | 24 | — | — | ||||||||||||||||
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At 31 December 2017, net of accumulated depreciation and impairment |
68,994 | 84,760 | 6,478 | 2,919 | 3,705 | 166,856 | ||||||||||||||||||
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At 31 December 2017: |
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Cost |
111,297 | 105,801 | 8,809 | 7,934 | 3,705 | 237,546 | ||||||||||||||||||
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Accumulated depreciation and impairment |
(42,303 | ) | (21,041 | ) | (2,331 | ) | (5,015 | ) | — | (70,690 | ) | |||||||||||||
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Net carrying amount |
68,994 | 84,760 | 6,478 | 2,919 | 3,705 | 166,856 | ||||||||||||||||||
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During the year, the Group recognised an impairment loss of approximately RMB379 million relating to aircraft, engines and flight equipment (2016: RMB29 million, 2015: RMB48 million). The recoverable amounts of these impaired aircraft, engines and flight equipment are determined at the higher of their fair value less costs to sell and value in use.
As at 31 December 2017, certain aircraft and buildings owned by the Group with an aggregate net carrying amount of approximately RMB11,207 million (2016: approximately RMB17,559 million) were pledged as collateral under certain borrowing arrangements (note 34).
As at 31 December 2017, the ownership certificates of buildings with a net carrying amount of RMB1,397 million (31 December 2016: RMB1,455 million) have not been obtained. The directors of the Company are of the opinion that the Group legally owns and has the rights to use the aforesaid buildings, and that there is no material adverse impact on the overall financial position of the Group.
| Aircraft, engines and | ||||||||||||||||||||||||
| flight equipment | Other | |||||||||||||||||||||||
| Owned | Held under | property, plant | Construction | |||||||||||||||||||||
| finance leases | Buildings | and equipment | in progress | Total | ||||||||||||||||||||
| RMB million | RMB million | RMB million | RMB million | RMB million | RMB million | |||||||||||||||||||
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31 December 2016 |
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At 31 December 2015 and at 1 January 2016: |
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Cost |
80,402 | 89,146 | 7,993 | 7,486 | 1,771 | 186,798 | ||||||||||||||||||
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Accumulated depreciation and impairment |
(28,557 | ) | (18,029 | ) | (2,266 | ) | (4,704 | ) | — | (53,556 | ) | |||||||||||||
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Net carrying amount |
51,845 | 71,117 | 5,727 | 2,782 | 1,771 | 133,242 | ||||||||||||||||||
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At 1 January 2016, net of accumulated depreciation and impairment |
51,845 | 71,117 | 5,727 | 2,782 | 1,771 | 133,242 | ||||||||||||||||||
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Additions |
9,411 | 4,485 | 5 | 651 | 1,477 | 16,029 | ||||||||||||||||||
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Disposals |
(324 | ) | (58 | ) | (21 | ) | (212 | ) | — | (615 | ) | |||||||||||||
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Transfer from construction in progress |
— | — | 474 | 328 | (802 | ) | — | |||||||||||||||||
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Transfer from advanced payments on acquisition of aircraft (note 21) |
12,236 | 4,354 | — | — | — | 16,590 | ||||||||||||||||||
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Transfer to investment properties (note 19) |
— | — | (38 | ) | — | — | (38 | ) | ||||||||||||||||
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Transfer to other non-current assets |
— | — | — | — | (48 | ) | (48 | ) | ||||||||||||||||
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Depreciation provided during the year |
(5,561 | ) | (5,563 | ) | (273 | ) | (554 | ) | — | (11,951 | ) | |||||||||||||
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Impairment |
(29 | ) | — | — | — | — | (29 | ) | ||||||||||||||||
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Transfers |
(2,839 | ) | 2,839 | — | — | — | — | |||||||||||||||||
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At 31 December 2016, net of accumulated depreciation and impairment |
64,739 | 77,174 | 5,874 | 2,995 | 2,398 | 153,180 | ||||||||||||||||||
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At 31 December 2016: |
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Cost |
99,653 | 97,064 | 8,324 | 8,201 | 2,398 | 215,640 | ||||||||||||||||||
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Accumulated depreciation and impairment |
(34,914 | ) | (19,890 | ) | (2,450 | ) | (5,206 | ) | — | (62,460 | ) | |||||||||||||
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Net carrying amount |
64,739 | 77,174 | 5,874 | 2,995 | 2,398 | 153,180 | ||||||||||||||||||
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