Air Canada 2007 Annual Report Download - page 133

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Consolidated Financial Statements and Notes
133
19. RELATED PARTY TRANSACTIONS
At December 31, 2007, ACE has a 75% ownership interest in Air Canada. Air Canada has various related party transactions
with ACE and other ACE-related entities, including Aeroplan, Jazz and ACTS Aero. ACTS Aero conducts the business operated
by ACTS LP prior to the sale of ACTS LP announced by ACE and completed on October 16, 2007 (refer to Note 20). Also refer
to Note 3 for certain related party transactions completed during the Air Canada IPO.
Related party trade balances, as outlined below, mainly arise from the provision of services, including the allocation of
employee related costs, as further described in Note 10, the allocation of corporate expenses, as described in Note 3, and
centralized cash management activities as described below. Trade balances between the related parties have trade terms
which generally require payment 30 days after receipt of invoice.
The related party balances resulting from the application of the related party agreements were as follows:
2007* 2006
Accounts receivable
ACE $ 9 $ -
Aeroplan 20 6
ACTS / ACTS Aero 75 97
Jazz 85 -
$ 189 $ 103
Prepaid Maintenance
ACTS Aero $ 24 $ -
$ 24 $ -
Accounts payable and accrued liabilities
ACE $ - $ 12
ACTS / ACTS Aero 88 111
Jazz 71 -
$ 159 $ 123
* Effective May 24, 2007, the results and fi nancial position of Jazz are not consolidated within Air Canada (Note 1).