Air Canada 2008 Annual Report Download - page 127

Download and view the complete annual report

Please find page 127 of the 2008 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 152

  • 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
  • 147
  • 148
  • 149
  • 150
  • 151
  • 152

Consolidated Financial Statements and Notes
127
13. SEGMENT INFORMATION
Effective May 24, 2007, as described in Note 2d, Air Canada has one reportable segment. Prior to the deconsolidation of
Jazz, Air Canada had two business segments; Air Canada Services and Jazz. Segment information has been prepared on a
basis consistent with how financial information is produced internally for the purposes of making operating decisions. A
reconciliation of the total amounts reported by each business segment and geographic region to the applicable amounts in
the consolidated statements is as follows:
2008 2007*
Air Canada Air Canada
Segment Jazz Elimination Consolidated
Total
Operating revenues
Passenger $ 9,713 $ 9,329 $ - $ - $ 9,329
Cargo 515 550 - - 550
Other 854 717 3 - 720
External revenue 11,082 10,596 3 - 10,599
Inter-segment - 50 610 (660) -
Total revenues 11,082 10,646 613 (660) 10,599
Operating expenses
Aircraft fuel 3,419 2,552 125 (124) 2,553
Wages, salaries and benefits 1,877 1,920 139 - 2,059
Airport and navigation fees 1,001 1,022 80 (81) 1,021
Capacity purchase with Jazz 948 923 - (386) 537
Depreciation and amortization 694 548 9 - 557
Aircraft maintenance 659 757 50 (8) 799
Food, beverages and supplies 314 313 6 - 319
Communications and
information technology 286 275 2 - 277
Aircraft rent 279 282 57 (16) 323
Commissions 194 201 - - 201
Other 1,450 1,420 83 (45) 1,458
Total operating expenses 11,121 10,213 551 (660) 10,104
Operating income (loss)
 beforeundernoteditem (39) 433 62 - 495
Provision for cargo investigations (125) - - - -
Operating income (loss) (164) 433 62 - 495
Interest income 57 92 2 - 94
Interest expense (319) (348) (3) - (351)
Interest capitalized 37 108 - - 108
Gain (loss) on capital assets (34) 19 - - 19
Gain on financial instruments
recorded at fair value 92 26 - - 26
Other non-operating income (expense) (3) (19) 1 - (18)
Non-controlling interest (12) (9) - (62) (71)
Foreign exchange gain (loss) (655) 317 - - 317
Provision for income taxes (24) (190) - - (190)
Segment income (loss) $ (1,025) $ 429 $ 62 $ (62) $ 429
* Up until May 24, 2007, the results of Jazz are consolidated within Air Canada (Note 1).
Included within Depreciation and amortization is depreciation of property and equipment for 2008 of $646 (2007 - $514).
In 2007, this was broken down by segment as follows: Air Canada $505 and Jazz $9.