Air Canada 2009 Annual Report Download - page 139

Download and view the complete annual report

Please find page 139 of the 2009 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 146

  • 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

Consolidated Financial Statements and Notes
139
18. RELATED PARTY TRANSACTIONS
At December 31, 2009, ACE holds a 27% ownership interest in Air Canada. Air Canada has various related party transactions
with ACE and Aveos (formerly called ACTS Aero Technical Support & Services Inc. (“ACTS Aero”)), which conducts the
business previously operated by ACTS LP (“ACTS”) prior to the sale of ACTS by ACE on October 16, 2007.
During 2008, ACTS LP settled certain contracts with Air Canada for $11, in relation to the October 2007 sale of assets of
ACTS LP. These contracts were accounted for as equity transactions, resulting in an increase to Contributed surplus of $11.
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 8. 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:
2009 2008
Accounts receivable
ACE $ - $ 2
Aveos 135 120
$ 135 $ 122
Prepaid maintenance
Aveos $ 9 $ 5
$ 9 $ 5
Accounts payable and accrued liabilities
ACE $ 3 $ -
Aveos 92 99
$ 95 $ 99
Long-term debt including current portion and value of warrants
ACE $ 150 $ -
$ 150 $ -
Revenues and expenses with related parties are summarized as follows:
2009 2008
Revenues
Property rental revenues from ACE and Aveos $ 31 $ 29
Revenues from information technology services to Aveos 6 15
Revenues from corporate services and other to ACE and Aveos 9 15
$ 46 $ 59
Expenses
Maintenance expense for services from Aveos $ 514 $ 478
Recovery of wages, salary and benefi t expense for employees assigned to ACE and Aveos (228) (277)
Interest expense for ACE’s participation in the Credit Facility 8 -
Other expenses - 1
$ 294 $ 202