Air Canada 2008 Annual Report Download - page 145

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Consolidated Financial Statements and Notes
145
18. RELATED PARTY TRANSACTIONS
At December 31, 2008, ACE has a 75% ownership interest in Air Canada. Air Canada has various related party transactions
with ACE and Aveos (formerly called ACTS Aero Technical Support & Services Inc. (“ACTS Aero”)), which conducts the
business previously operated by ACTS LP (“ACTS”) prior to the sale of ACTS announced by ACE and completed on October
16, 2007.
During 2008, ACTS LP settled certain contracts with Air Canada for $11, in relation to the October 2007 sale of assets of
ACTS LP. These contracts were accounted for as equity transactions, resulting in an increase to Contributed surplus of $11.
Related party trade balances, as outlined below, mainly arise from the provision of services, including the allocation of
employee related costs, as further described in Note 8. Trade balances between the related parties have trade terms which
generally require payment 30 days after receipt of invoice.
The related party balances resulting from the application of the related party agreements were as follows:
2008 2007
Accountsreceivable
ACE $ 2 $ 9
Aveos 120 75
$ 122 $ 84
Prepaid maintenance
Aveos $ 5 $ 24
$ 5 $ 24
Accountspayableandaccruedliabilities
Aveos $ 99 $ 88
$ 99 $ 88
Revenues and expenses with related parties are summarized as follows:
2008 2007
Revenues
Property rental revenues from ACE and Aveos $ 29 $ 39
Revenues from information technology services to Aveos 15 14
Revenues from corporate services and other to ACE and Aveos 15 16
Cargo revenues from Aveos - 1
Other revenues - 1
$ 59 $ 71
Expenses
Maintenance expense for services from Aveos $ 478 $ 632
Recovery of wages, salary and benefit expense for employees assigned to ACE and Aveos (277) (362)
Other expenses 1 -
$ 202 $ 270