Air Canada 2009 Annual Report Download - page 92

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2009 Air Canada Annual Report
92
• A memorandum of understanding with GE Capital Aviation Services (the “GECAS MOU”) for the sale and leaseback
of three Boeing 777 aircraft. The sale and leaseback transactions were substantially completed in early November
2009 and provided initial net cash proceeds of $95 (net of deposits), with additional net proceeds of $20 received in
January 2010 upon completion of the remaining part of the transaction; and
• An agreement amending the terms of the Jazz CPA, effective August 1, 2009, which provides for a reduction to rates
paid under the agreement.
During the second quarter of 2009
• A secured loan with Aeroplan for net proceeds of $79. This loan, as described above, was terminated in July 2009
pursuant to the transactions relating to the Credit Facility.
During the fi rst quarter of 2009
• Financing arrangements secured by spare parts, spare engines and a Boeing 777 aircraft for aggregate proceeds of
$267, net of fees of $8. The spare engine fi nancing was partially repaid in July 2009, as described above;
• Sale-leaseback of a Boeing 777 aircraft for aggregate proceeds of $172 and the required repayment of a debt
obligation related to the aircraft of $128, which included a prepayment fee of $14;
• Repayment of pre-delivery fi nancing of $83 on the Boeing 777 aircraft received during the fi rst quarter; and;
During 2009, Air Canada entered into various inventory fi nancing arrangements under which it acquired $117 of spare
parts inventories in exchange for the issuance of bills of exchange. Subsequent to the arrangements, Air Canada completed
various transactions in relation to certain bills of exchange resulting in gains of $4 being recorded in non-operating income
(expense) in 2009. As at December 31, 2009, the remaining inventory is valued at $43 which represents its estimated net
realizable value and the expected fi nal payment due in 2010 under the fi nancing arrangements is $11 (US$11).
In addition, during the year, the net return of collateral deposits on fuel derivatives amounted to $285, while the settlement
of fuel derivative contracts in favour of counterparties amounted to $280 (refer to Note 15 for additional information on
fuel price risk management activities).