Air Canada 2006 Annual Report Download - page 7

CAUTION REGARDING FORWARD-LOOKING INFORMATION
This MD&A includes forward-looking statements within the meaning of applicable securities laws. These
statements relate to analyses and other information that are based on forecasts of future results and estimates
of amounts not yet determinable. These statements may involve, but are not limited to, comments relating to
strategies, expectations, planned operations or future actions.
These forward-looking statements are identified by the use of terms and phrases such as "anticipate", "believe",
"could", "estimate", "expect", "intend", "may", "plan", "predict", "project", "will", "would", and similar terms and
phrases, including references to assumptions.
Forward-looking statements, by their nature, are based on assumptions and are subject to important risks and
uncertainties. Any forecasts or forward-looking predictions or statements cannot be relied upon due to, amongst
other things, changing external events and general uncertainties of the business. Results indicated in forward-
looking statements may differ materially from actual results for a number of factors, including without limitation,
energy prices, general industry, market and economic conditions, war, terrorist attacks, changes in demand due
to the seasonal nature of the business, the ability to reduce operating costs and employee counts, employee
relations, labour negotiations or disputes, pension issues, currency exchange and interest rates, changes in
laws, regulatory developments or proceedings, pending and future litigation and actions by third parties as well
as the factors identified throughout this MD&A and, in particular, those identified in the "Risk Factors" section.
The forward-looking statements contained in this MD&A represent the Corporation’s expectations as of the date
of this MD&A and are subject to change after such date. However, the Corporation disclaims any intention or
obligation to update or revise any forward-looking statements whether as a result of new information, future
events or otherwise, except as required under applicable securities regulations.
2. GLOSSARY
Available Seat Miles or ASMs — A measure of passenger capacity calculated by multiplying the total number of
seats available for passengers by the miles flown;
CASM — Operating expense per ASM;
EBITDAR — EBITDAR is earnings before interest taxes, depreciation, amortization and obsolescence and
aircraft rent and is a non-GAAP financial measure commonly used in the airline industry to view operating
results before aircraft rent and depreciation, amortization and obsolescence as these costs can vary
significantly among airlines due to differences in the way airlines finance their aircraft and other assets;
Initial Jazz CPA — The capacity purchase agreement between Air Canada and Jazz Air Limited Partnership
which was in effect from October 1, 2004 until December 31, 2005;
Jazz CPA — The amended and restated capacity purchase agreement, effective January 1, 2006, between Air
Canada and Jazz;
Passenger Load Factor — A measure of passenger capacity utilization derived by expressing Revenue
Passenger miles as a percentage of Available Seat Miles;
Passenger Revenue per Available Seat Mile or RASM — Average passenger revenue per ASM;
Revenue Passenger Miles or RPMs — A measure of passenger traffic calculated by multiplying the total
number of revenue passengers carried by the miles they are carried;
Subsidiary or subsidiaries — refers to, in relation to Air Canada, to any entity, including a corporation or a
limited partnership, which is controlled, directly or indirectly, by Air Canada.
Yield — Average passenger revenue per RPM.
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Management's Discussion and Analysis of Results and Financial Condition