12 Months Financial Report - Turkish Airlines

TÜRK HAVA YOLLARI ANONİM ORTAKLIĞINOTES TO THE CONSOLIDATED FINANCIAL STATEMENTSFOR THE PERIOD ENDED 31 DECEMBER, 200922 PROVISIONS, CONTINGENT ASSETS AND LIABILITIES (Cont’d)b) At the beginning of 2006, US Ministry of Justice Antitrust Unit and Europe AntitrustAuthorities synchronously initiated an investigation in Europe and the United States about the fixof the air cargo prices that covers the leading airline companies. Within the context of thisinvestigation, information and documents that the Company holds are requested to be presentedby USA Columbia (Washington) Regional Court through official notification in April 6, 2006.Similar notifications are sent to the other concerning airline companies. Within the context of thisinvestigation, the Company’s inviolation of the agreement is declared to Anti-trust department ofUS Ministry of Justice, negotiations are continued by the American lawyers on behalf of theCompany. As of the report date, the Company management thinks that the results of thisinvestigation initiated by the US Ministry of Justice cannot be reliably measured. For this reason,no provision is provided for this issue in the accompanying financial statements. But, there is apossibility of financial liability to the Group as the result of this issue.c) Dispute Related to Collective BargainingSince it is understood that an agreement will not be reached in the 22nd Term talks on collectivebargaining between the Company and labor union Türkiye Sivil Havacılık Sendikası (“Hava-İş”),a “Record of Dispute” is signed and mediation process started. The Company made a wageincrease of 6% on its own initiative, however, “Hava-İş” demands a retroactive increase in wages.Since collective bargaining is not concluded as of balance sheet date, there is not any provision infinancial statements for the matter due to the fact that the result is uncertain for 2009 whether itwill cause additional charge for the Company or not.d) The Group’s discounted retirement pay provision is TL 151.875.562. The Group’s liability forretirement pay would be approximately TL 299.090.230 as of 31 December 2009, if allemployees were dismissed on that date.23 COMMITMENTSThe Group’s not accrued operational leasing debts details are as follows:31 December 2009 31 December 2008Less than 1 year 312.850.973 201.619.938Between 1 – 5 years 853.516.736 684.056.091More than 5 years 422.992.569 422.009.0941.589.360.278 1.307.685.123To be delivered between the years 2010-2012, the Group signed a contract for 24 aircrafts with atotal value of 5.9 billion US Dollars, according to the price lists before the discounts made by theaircraft manufacturing firms. The Group has made an advance payment of 913 Million USDollars relevant to these purchases as of 31 December 2009.43