Air Canada 2007 Annual Report Download - page 127

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Consolidated Financial Statements and Notes
127
Operating Lease Commitments
As at December 31, 2007 the future minimum lease payments under existing operating leases of aircraft and other property
amount to $2,108 (December 31, 2006 - $2,957) using year end exchange rates. This also includes payments for aircraft
contemplated by letters of intent signed in January 2008 for the sale and lease back of four Boeing 777 aircraft as described
above.
Operating lease commitments Aircraft Other Property Total
Year ending December 31, 2008 $ 280 $ 59 $ 339
Year ending December 31, 2009 271 42 313
Year ending December 31, 2010 255 36 291
Year ending December 31, 2011 197 33 230
Year ending December 31, 2012 180 32 212
Thereafter 602 121 723
$ 1,785 $ 323 $ 2,108
As described in Note 19, the Corporation subleases certain aircraft to Jazz on a fl ow through basis, which are reported net
on the statement of operations. These subleases relate to 33 Bombardier CRJ-200 aircraft and 15 Bombardier CRJ-705
aircraft. The operating lease commitments under these aircraft, which are recovered from Jazz, are not included in the
aircraft operating lease commitments table above but are summarized as follows:
Year ending December 31, 2008 $ 84
Year ending December 31, 2009 84
Year ending December 31, 2010 76
Year ending December 31, 2011 75
Year ending December 31, 2012 75
Thereafter 673
$ 1,067
The subleases with Jazz have the same terms and maturity as the Corporation’s corresponding lease commitments to the
lessors.
Lease payments for aircraft classifi ed as capital leases and variable interest entities for accounting purposes are disclosed
in Note 8.
As at December 31, 2007, the future minimum non-cancellable commitments for the next 12 months under the capacity
purchase agreements with Jazz is approximately $650 and with unaffi liated regional carriers is $20. As described in Note 19,
the initial term of the Jazz CPA expires December 31, 2015 with two automatic renewal periods of fi ve years each, subject
to either party’s right not to renew by notice at least one year prior to the expiration of the then applicable term. As the
rates under the Jazz CPA are subject to adjustments beginning in 2009, it is not possible to determine the minimum non-
cancellable commitments beyond 2008; however they are not expected to change signifi cantly from the 2008 amount.