Air Canada 2009 Annual Report Download - page 14

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2009 Air Canada Annual Report
14
• The sale and leaseback of three Boeing 777 aircraft. The sale and leaseback transactions were substantially completed
in November 2009 and provided initial cash proceeds of $95 million (net of deposits). Additional net cash proceeds
of $20 million were received in January 2010;
• The sale and leaseback of one Boeing 777 aircraft for aggregate proceeds of $172 million and the requirement
repayment of a debt obligation related to the aircraft of $128 million, which included a prepayment fee of
$14 million;
• An agreement amending the terms of the Jazz CPA, effective August 1, 2009, which provides for a reduction to rates
paid under the agreement;
• Financing arrangements secured by spare parts, spare engines and a Boeing 777 aircraft which provided aggregate
proceeds of $267 million, net of fees of $8 million. As discussed above, $38 million of the spare engine fi nancing was
repaid on closing of the Credit Facility;
• During 2009, Air Canada entered into various inventory fi nancing arrangements under which it acquired $117 million
of spare parts inventories in exchange for the issuance of bills of exchange. Subsequent to the arrangements,
Air Canada completed various transactions in relation to certain bills of exchange resulting in gains of $4 million
being recorded in non-operating income (expense) in 2009. As at December 31, 2009, the remaining inventory is
valued at $43 million which represented its estimated net realizable value. The expected fi nal payment due in 2010
under the fi nancing arrangements is $11 million (US$11 million);
• Repayment of pre-delivery fi nancing of $83 million on a Boeing 777 aircraft received during the fi rst quarter of
2009; and
• In 2009, the net return of collateral deposits on fuel derivatives amounted to $285 million, while the settlement of
fuel derivative contracts in favour of counterparties amounted to $280 million.