296 O N E R E P O R T 2 0 2 2 OVERVIEW BUSINESS OVERVIEW AND PERFORMANCE CORPORATE GOVERNANCE FINANCIAL INFORMATION SUSTAINABLE BUSINESS DEVELOPMENT Geographic information The Group operates and has operating hubs only in Thailand. As a result, all the revenues and assets as reflected in the financial statements pertain exclusively to this geographical reportable segment. Major customers For the years 2022 and 2021, the Group has no major customer with revenue of 10 percent or more of an entity’s revenues. 35. Provident fund The subsidiary and its employees have jointly established a provident fund in accordance with the Provident Fund Act B.E. 2530. Both employees and the subsidiary contribute to the fund monthly and the fund will be paid to employees upon termination in accordance with the fund of the subsidiary’s rule. The contributions for the year 2022 amounting to approximately Baht 80 million (2021: Baht 56 million) were recognised as expenses. 36.Commitments and contingent liabilities 36.1 Building construction commitments As at 31 December 2022, the subsidiary had capital commitments of Baht 15 million (2021: Baht 34 million) relating to the construction of a project’s building. 36.2 Aircraft maintenance service commitments The subsidiary has commitments under aircraft maintenance service agreements made with related companies and other aircraft lessors. The subsidiary agrees to pay aircraft maintenance service fees at the rates in USD currency stipulated in the agreements, which vary for each aircraft depending on flight hours and the age of the aircraft. 36.2 Service commitments As at 31 December 2022, the subsidiary had significant service commitments as follows. 1) The subsidiary had commitments from using human resource, legal and other services with related subsidiary. The subsidiary was to pay the fees at the agreed rates. During the year ended 31 December 2022, the fees under this agreement amounted to Baht 359 million (2021: Baht 397 million). 2) The subsidiary had a commitment from using marketing, booking system and other services with related subsidiary. The subsidiary was to pay the fees depending on the rates stipulated in the agreements. During the year ended 31 December 2022, the fees under this agreement amounted to Baht 563 million (2021: Baht 136 million). 3) The subsidiary had a commitment from using data consultancy and management services with related companies. The subsidiary was to pay the fees at the agreed rates 36.4 Other commitments The subsidiary had the future minimum lease payments in respect of short-term leases, insurance agreements and other service agreements as follows. 36.5 Guarantees 1) As at 31 December 2022, the subsidiary had not guarantee obligations for pilot trainees’ education loans from a bank for commercial pilot license courses amounting (2021: Baht 14 million). 2) The subsidiary had commitments from letters of guarantee in respect of ground handling, technical support, purchase of aviation fuel and other flight operating activities including maintenance reserve fund in the ordinary course of business as follows. (Unit: Baht Thousand) Consolidated financial statements 2022 2021 Payable: In up to 1 year 95,596 79,645 In over 1 year and up to 5 years 25,199 3,296 Total 120,795 82,941
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