| 35 | PROVISION FOR RETURN CONDITION CHECKS FOR AIRCRAFT UNDER OPERATING LEASES |
| 2017 | 2016 | |||||||
| RMB million | RMB million | |||||||
|
At 1 January |
3,670 | 3,503 | ||||||
|
Accrual |
1,214 | 1,010 | ||||||
|
Utilization |
(1,865 | ) | (843 | ) | ||||
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At 31 December |
3,019 | 3,670 | ||||||
|
Less: current portion |
(981 | ) | (1,175 | ) | ||||
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|
Long-term portion |
2,038 | 2,495 | ||||||
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In respect of aircraft and engines under operating leases, the Group has obligations to fulfil certain return conditions under the leases. The balance as at 31 December 2017 and 2016 represented the provision for the estimated cost of these return condition checks which is made on a straight-line basis over the term of the leases.