22 Operating and finance leases

Operating leases

Leases as lessee - non-cancellable operating lease rentals are payable as follows:
  2007
£m		 2006
£m
Within one year 77 78
Between one and five years 179 213
After five years 99 106
  355 397
Leases as lessor - non-cancellable operating lease rentals are receivable as follows:
  2007
£m		 2006
£m
Within one year 5 8
Between one and five years 13 13
After five years 3 4
  21 25
The Group acts as lessee and lessor for both land and buildings and gas turbine engines, and acts as lessee for some plant and machinery.

    - Sublease payments of £15m (2006 £23m) and sublease receipts of £8m (2006 £11m) were recognised in the income statement in the year.

    - Purchase options exist on aero engines with the period to the purchase option date varying between two to six years.

    - Escalation clauses exist on some leases and are linked to LIBOR.

    - The total future minimum sublease payments expected to be made is £13m (2006 £23m) and sublease receipts expected to be received is £3m (2006 £5m).

Finance leases

Finance lease liabilities are payable as follows:
2007 2006
  Payments
£m		 Interest
£m		 Principal
£m		 Payments
£m		 Interest
£m		 Principal
£m
Within one year 6 1 5 9 2 7
Between one and five years 3 — 3 8 2 6
After five years 1 — 1 1 — 1
  10 1 9 18 4 14
There were no contingent rents recognised as an expense in the year (2006 £nil) and no future minimum sublease receipts are expected under non-cancellable subleases (2006 £nil).

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