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70 WestJet 2009 Annual Report
NOTES TO CONSOLIDATED
FINANCIAL STATEMENTS
For the years ended December 31, 2009 and 2008
(Stated in thousands of Canadian dollars, except share and per share data)
12. Commitments and contingencies (continued)
(b) Operating leases and commitments
The Corporation has entered into operating leases and commitments for aircraft, land, buildings, equipment, computer hardware, software licences
and satellite programming. As at December 31, 2009, the future payments in Canadian dollars, and when applicable the US-dollar equivalents,
under operating leases and commitments are as follows:
As at December 31, 2009, the Corporation is committed to lease an additional six 737-700 aircraft and fi ve 737-800 aircraft for terms ranging
between eight and 10 years in US dollars. These aircraft have been included in the above totals.
The Corporation signed a six-year agreement with Bell ExpressVu to provide satellite programming. The agreement commenced in 2004 and can
be renewed for an additional four years. During 2009, the Corporation amended its agreement with LiveTV to install, maintain and operate live
satellite television on all of the Corporation’s aircraft for a term of 10 years. The minimum commitment amounts associated with these agreements
have been included in the table totals above.
In 2008, the Corporation signed an agreement with Sabre Airline Solutions (Sabre) to provide the Corporation with a licence to access and use
Sabre’s reservation system, SabreSonic for a term of eight years. The minimum contract amounts associated with the reservation system have
been included in the table totals above.
(c) Letters of guarantee
The Corporation has available two revolving loan credit facilities with a Canadian charter bank for letters of guarantee. During the year ended
December 31, 2009, the Corporation amended one of the two facilities and has available $38,000 (2008 – $15,000) for letters of guarantee. An
accumulative balance greater than $8,000 requires funds to be assigned and held as cash security. As at December 31, 2009 $12,491 (2008 –
$12,222) of letters of guarantee were issued under these facilities. These facilities are secured by a general security agreement, an assignment
of insurance proceeds and $4,491 (2008 – $4,222) of restricted cash.
(d) Operating line of credit
Commencing in the third quarter of 2009, the Corporation has available a three-year revolving operating line of credit with a syndicate of three
Canadian banks. The line of credit is available for up to a maximum of $85,000 and is secured by the Corporation’s Campus facility. The line of
credit bears interest at prime plus 0.50% per annum, or a bankers acceptance rate at 2.0% annual stamping fee or equivalent, and is available
for general corporate expenditures and working capital purposes. The Corporation is required to pay a standby fee of 15 basis points, based on
the average unused portion of the line of credit for the previous quarter, payable quarterly. As at December 31, 2009, no amounts were drawn.
USD CAD
2010 $ 159,106 $ 189,892
2011 182,562 205,904
2012 187,896 209,340
2013 191,963 210,489
2014 187,498 202,875
2015 and thereafter 520,002 594,850
$ 1,429,027 $ 1,613,350