Air Canada 2009 Annual Report Download - page 40

Download and view the complete annual report

Please find page 40 of the 2009 Air Canada annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 146

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80
  • 81
  • 82
  • 83
  • 84
  • 85
  • 86
  • 87
  • 88
  • 89
  • 90
  • 91
  • 92
  • 93
  • 94
  • 95
  • 96
  • 97
  • 98
  • 99
  • 100
  • 101
  • 102
  • 103
  • 104
  • 105
  • 106
  • 107
  • 108
  • 109
  • 110
  • 111
  • 112
  • 113
  • 114
  • 115
  • 116
  • 117
  • 118
  • 119
  • 120
  • 121
  • 122
  • 123
  • 124
  • 125
  • 126
  • 127
  • 128
  • 129
  • 130
  • 131
  • 132
  • 133
  • 134
  • 135
  • 136
  • 137
  • 138
  • 139
  • 140
  • 141
  • 142
  • 143
  • 144
  • 145
  • 146

2009 Air Canada Annual Report
40
10.4 CAPITAL EXPENDITURES AND RELATED FINANCING ARRANGEMENTS
Air Canada has 37 fi rm orders for Boeing 787 aircraft with The Boeing Company (“Boeing”). Air Canada also holds purchase
options for 13 Boeing 787 aircraft and purchase rights for 10 Boeing 787 aircraft and 18 Boeing 777 aircraft. Air Canada’s
fi rst Boeing 787 aircraft is scheduled for delivery in the second half of 2013.
For the fi rm aircraft orders, the Corporation has fi nancing commitments from Boeing and the engine manufacturer covering
31 of the 37 Boeing 787 aircraft. The fi nancing terms for 28 out of the 31 covered aircraft is for 80% of the aircraft delivery
price and the term to maturity is 12 years with straight-line principal repayments. For the remaining three out of the
31 covered aircraft, the fi nancing under the commitment covers up to 90% of the capital expenditure and the term to
maturity is 15 years with principal payments made on a mortgage style basis resulting in equal installment payments of
principal and interest over the term to maturity.
The table below provides Air Canada’s current projected, planned and committed capital expenditures for 2010, for the next
four years and after 2014.
(Canadian dollars in millions) 2010 2011 2012 2013 2014 Thereafter
Projected committed expenditures $ 74 $ 47 $ 121 $ 731 $ 979 $ 2,860
Projected planned but uncommitted expenditures 60 93 112 118 50
Total projected expenditures (1) (2) 134 140 233 849 1,029
Projected fi nancing on committed expenditures - - - (566) (775)
Total projected expenditures, net of fi nancing $ 134 $ 140 $ 233 $ 283 $ 254
(1) U.S. dollar amounts are converted using the December 31, 2009 noon day exchange rate of US$1 = C$1.0466. Final aircraft delivery prices include estimated escalation
and interest on deferred delivery payments.
(2) The dollar amounts refl ected above do not include obligations pertaining to day-to-day operations.