2002 Annual Report - Turkish Airlines

78 • 2002 TURKISH AIRLINES annual reportTURKISH AIRLINES INC.NOTES TO THE FINANCIAL STATEMENTS / continued(all figures are restated to TL money values at December 31, 2002 pursuant to IAS 29)12- FINANCIAL ASSETSThe investment accounted for using the equity method is as follows:December 31, 2002 December 31,2002TL 000,000 TL 000,000Günefl Ekspress Havac›l›k A.fi. (Sun Express) 3,837,000 2,056,730Other financial assets accounted at cost are as follows:December 31, 2002 December 31,2002TL 000,000 TL 000,000Qualiflyer Ground Services Ltd. - 67,011Emek ‹nflaat ve ‹flletme A.fi. 15,479 15,248Sita Inc 1,376,692 1,376,691Diminution in Value of Sita Inc. Shares (976,456) -THY SRL 688 686Uçak Servisi A.fi. (USAfi) 11,101,281 -Diminution in Value of USAfi Shares (3,081,201) -8,436,483 1,459,636The tender for the catering service was won by Uçak Servis A.fi. (USAfi) and service agreement was signed in January 1, 2002. Based on share transferagreement made between USAfi’s main partner Gate Gourmet Holding A.G. (GGH) and the Company, USAfi will transfer its group B free sharescorresponding to 15% of its total capital to the Company. According to agreement, ownership of the first 10% share was transferred in June, 2002,and the remaining 5% will be transferred 1.25% per year during years 2003 and 2006. 570 million shares corresponding to the first 10% share ofUSAfi’s capital, which was transferred on June 21, 2002 to the Company, was recorded to “Financial Assets” and “Deferred income” accounts frommarket value of TL 11,101,281 million. “Deferred income” amount will be amortized to income during 5 years catering service agreement on a straightlinebasis.Details of the Company’s long-term financial assets at December 31, 2002 are as follows:Place of Incorporation Proportion of Proportion ofName of the Company and Operation Ownership Interest Voting Power Held Principal ActivityGünefl Ekspress Havac›l›k A.fi. (SUN EXPRESS) Turkey 50% 50% Air TransportationEmek ‹nflaat ve ‹flletme A.fi. Turkey 0.3% 0.3% ConstructionSita INC. Holland Less than 0.1% None Information &TelecommunicationServicesTHY SRL Kiflinev 100% 100% Sales BureauUçak Servis A.fi. (USAfi) Turkey 10% 10% Catering