Air Canada 2006 Annual Report Download - page 113

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Air Canada has signed a 10-year lease for one Boeing 777-300ER from International Lease Finance
Corporation ("ILFC"), which is scheduled to be delivered in May 2007.
Aircraft Interior Refurbishment Program
In addition to acquiring new aircraft, Air Canada commenced a major refurbishment of the interior of its existing
aircraft in April 2006. All existing aircraft, except for the Airbus A340 aircraft, will have refurbished interiors. The
aircraft refurbishment program is scheduled to be completed by the middle of 2008. The capital expenditure
associated with this program will be amortized over a five-year period.
Capital Commitments
As at December 31, 2006, the estimated aggregate cost of the future firm deliveries as well as other capital
purchase commitments approximates $5,861 (of which $4,745 is subject to firm commitment financing). US
dollar amounts are converted using the December 31, 2006 noon day rate of CDN$1.1653. The estimated
aggregate cost of aircraft is based on delivery prices that include estimated escalation and, where applicable,
deferred price delivery payment interest calculated based on the 90-day LIBOR rate at December 31, 2006.
Committed payments are as follows:
2006
Year ending December 31, 2007 $ 2,151
Year ending December 31, 2008 1,458
Year ending December 31, 2009 448
Year ending December 31, 2010 933
Year ending December 31, 2011 868
Thereafter 3
$ 5,861
Operating Lease Commitments
As at December 31, 2006 the future minimum lease payments under existing operating leases of aircraft and
other property amount to $2,957 (December 31, 2005 — $3,416) using year end exchange rates.
2006
Operating lease commitments
Aircraft Other property Total
Year ending December 31, 2007 $ 406 $ 66 $ 472
Year ending December 31, 2008 335 58 393
Year ending December 31, 2009 305 43 348
Year ending December 31, 2010 270 34 304
Year ending December 31, 2011 200 25 225
Thereafter 1,072 143 1,215
$ 2,588 $ 369 $ 2,957
Lease payments for aircraft classified as capital leases and variable interest entities for accounting purposes
are disclosed in Note 7 "Long-Term Debt and Capital Lease Obligations".
As at December 31, 2006, the future minimum non-cancellable commitments for the next 12 months under the
capacity purchase agreements with unaffiliated regional carriers is $14.
113
Combined Consolidated Financial Statements 2006