Air Canada 2006 Annual Report Download - page 38

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Air Canada has signed a 10-year lease agreement for one Boeing 777-300ER from International Lease Finance
Corporation ("ILFC"), which is scheduled to be delivered in May 2007.
Refurbishment of Existing Aircraft
In addition to acquiring new aircraft, Air Canada commenced a major refurbishment of the interior of its existing
aircraft in April 2006. Air Canada has completed the refurbishment of its 16th Airbus A320 and its fourth Boeing
767-300 aircraft. The refurbishment for the Airbus A319, A321 and A330 aircraft is expected to begin in early
2007. The Embraer and Boeing 777 aircraft are being delivered with the new seats and entertainment systems
already installed. The aircraft refurbishment program is scheduled to be completed by mid-2008. The capital
expenditure associated with this program will be amortized over a five-year period.
Projected Planned and Committed Capital Expenditures
The table below provides projections for aircraft expenditures for firm aircraft orders, net of aircraft financing,
combined with planned and committed expenditures for aircraft engines, inventory, property and equipment, net
of related financing, if applicable, for the years 2007 through to 2011.
In addition to the firm aircraft orders, Air Canada's purchase agreements include options, cancelable orders and
purchase rights, all of which are not included in these projections.
Air Canada Services
Projected planned and committed
capital expenditures
(1)(2)(3)
2007
2008
2009
2010
2011
Projected committed expenditures 2,144 1,458 448 933 868
Projected planned but uncommitted expenditures 246 293 158 148 154
Total projected expenditures 2,390 1,751 606 1,081 1,022
Projected financing on committed expenditures (1,533) (1,293) (302) (834) (732)
Total projected expenditures, net of financing 857 458 304 247 290
Jazz
Projected planned and committed
capital expenditures
(1)(2)
2007
2008
2009
2010
2011
Projected committed expenditures 7 - - - -
Projected planned but uncommitted expenditures 20 28 23 23 23
Total projected expenditures 27 28 23 23 23
(1) US dollar amounts are converted using the December 31, 2006 noon day rate of $1.1653. Final aircraft delivery
prices include estimated escalation and, where applicable, deferred price delivery payment interest calculated
based on the 90-day USD LIBOR rate at December 31, 2006.
(2) The dollar amounts reflected above do not include obligations pertaining to day-to-day operations.
(3) The projected financing amounts include loan commitments obtained as at December 31, 2006.
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