Air Canada 2008 Annual Report Download - page 130

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2008 Air Canada Annual Report
130
Operating Lease Commitments
As at December 31, 2008 the future minimum lease payments under existing operating leases of aircraft and other property
amount to $2,652 (2007 - $2,108) using year end exchange rates.
2009 2010 2011 2012 2013 Thereafter Total
Aircraft $ 367 $ 360 $ 318 $ 298 $ 271 $ 740 $ 2,354
Other property 49 38 36 33 22 120 298
Total $ 416 $ 398 $ 354 $ 331 $ 293 $ 860 $ 2,652
The above minimum lease payments include residual value guarantees, except for those for which the Corporation has
obtained residual value support.
The Corporation subleases certain aircraft to Jazz on a flow through basis, which are reported net on the statement of
operations. These subleases relate to 33 Bombardier CRJ-200 aircraft and 15 Bombardier CRJ-705 aircraft. The operating
lease commitments under these aircraft, which are recovered from Jazz, are not included in the aircraft operating lease
commitments table above but are summarized as follows:
2009 2010 2011 2012 2013 Thereafter Total
$ 89 $ 68 $ 51 $ 51 $ 51 $ 327 $ 637
The subleases with Jazz have the same terms and maturity as the Corporation’s corresponding lease commitments to the
lessors.
The future minimum non-cancellable commitments for the next 12 months under the capacity purchase agreements
with Jazz is approximately $764 (2007 - $650) and with unaffiliated regional carriers is $30 (2007 - $20). As described
in Note 2d, the initial term of the Jazz CPA expires December 31, 2015 with two automatic renewal periods of five years
each, subject to either party’s right not to renew by notice at least one year prior to the expiration of the then applicable
term. The rates under the Jazz CPA are subject to change based upon, amongst other things, changes in Jazz’s costs and
the results of a benchmarking exercise with other regional carriers to be completed in 2010. It is not possible to determine
the minimum commitment beyond 2009; however the commitment is not expected to change significantly from the 2009
amount.
Maturity Analysis
Principal and interest repayment requirements as at December 31, 2008 on Long-term debt and capital lease obligations,
and aircraft, engine and fuel facility debt consolidated as variable interest entities under AcG-15 are as follows:
Principal 2009 2010 2011 2012 2013 Thereafter Total
Long-term debt obligations $ 487 $ 239 $ 257 $ 275 $ 325 $ 1,699 $ 3,282
Debt consolidated under AcG-15 70 136 378 90 37 323 1,034
Capital lease obligations 106 110 113 173 124 456 1,082
$ 663 $ 485 $ 748 $ 538 $ 486 $ 2,478 $ 5,398
Interest 2009 2010 2011 2012 2013 Thereafter Total
Long-term debt obligations $ 168 $ 147 $ 135 $ 120 $ 106 $ 323 $ 999
Debt consolidated under AcG-15 56 47 28 20 16 58 225
Capital lease obligations 88 79 68 59 44 123 461
$ 312 $ 273 $ 231 $ 199 $ 166 $ 504 $ 1,685
Principal repayments in the table above exclude deferred financing charges of $44 which are offset against Long-term debt
and capital leases in the Consolidated Statement of Financial Position.