Air Canada 2009 Annual Report Download - page 90

2009 Air Canada Annual Report
90
1. BASIS OF PRESENTATION, NATURE OF OPERATIONS AND SIGNIFICANT EVENTS
A) BASIS OF PRESENTATION
The accompanying consolidated fi nancial statements are of Air Canada (the “Corporation”). ACE Aviation Holdings Inc.
(“ACE”) holds a 27% ownership interest in the Corporation as at December 31, 2009. The term “Corporation” refers to, as
the context may require, Air Canada and/or one or more of Air Canada’s subsidiaries.
These consolidated fi nancial statements are expressed in millions of Canadian dollars and are prepared in accordance with
generally accepted accounting principles in Canada (“GAAP”).
Certain comparative fi gures have been reclassifi ed to conform to the fi nancial statement presentation adopted in the
current year.
B) NATURE OF OPERATIONS
The consolidated fi nancial statements of Air Canada include wholly-owned subsidiaries of Air Canada, including Air Canada
Cargo Limited Partnership (“Air Canada Cargo”) up to and including November 30, 2009, ACGHS Limited Partnership
(“Air Canada Ground Handling Services” or “ACGHS”) up to and including November 30, 2009 and Touram Limited
Partnership (“Air Canada Vacations”). These consolidated fi nancial statements also include certain aircraft and engine
leasing entities and fuel facility corporations, which are consolidated under Accounting Guideline 15 – Consolidation of
Variable Interest Entities (Note 2Z).
Effective December 1, 2009, the operations of Air Canada Cargo and Air Canada Ground Handling Services, previously
operated by wholly-owned subsidiaries of Air Canada, were wound up into Air Canada and are now operated as divisions of
Air Canada. These wind-ups had no impact on the consolidated fi nancial statements.
Air Canada is Canada’s largest domestic and international airline and the largest provider of scheduled passenger services in
the Canadian market, the Canada-US transborder market as well as the international markets to and from Canada. Certain
of the scheduled passenger services offered on domestic and Canada-US transborder routes are provided by Jazz Air LP
(“Jazz”) through a capacity purchase agreement between Air Canada and Jazz (the “Jazz CPA”). Through Air Canada’s global
route network, virtually every major market throughout the world is served either directly or through the Star Alliance
network. In addition, Air Canada provides certain passenger charter services.
Air Canada offers air cargo services on domestic and US transborder routes using cargo capacity on aircraft operated by
Air Canada and Jazz. (Prior to December 1, 2009, these services were provided by Air Canada Cargo). Air Canada offers
international cargo services on routes between Canada and major markets in Europe, Asia, South America and Australia
using cargo capacity on Boeing 777 and other wide body aircraft operated by Air Canada.
Air Canada Ground Handling Services provided passenger handling services to Air Canada, Jazz and other airlines with a
primary focus on Canadian stations. Services covered included passenger check-in, gate management, baggage and cargo
handling and processing, cabin cleaning, de-icing as well as aircraft ramp services. Effective December 1, 2009 with the
wind-up of ACGHS, Air Canada offers these services directly.
Air Canada Vacations is one of Canada’s leading tour operators. Based in Montreal and Toronto, it operates its business in
the outgoing leisure travel market (Caribbean, Mexico, USA, Europe, South America and Asia) by developing, marketing and
distributing vacation travel packages and services through a network of independent travel agencies in Canada as well as
through the Air Canada Vacations website, aircanadavacations.com.
Air Canada is managed as one reportable segment based on how fi nancial information is produced internally for the
purposes of making operating decisions.
For the Years Ended December 31, 2009 and 2008 (Currencies in millions – Canadian dollars)