Air Canada 2010 Annual Report Download - page 127
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Consolidated Financial Statements and Notes
127
The future minimum non-cancellable commitment for the next 12 months under the Jazz CPA is approximately $749 (2009
- $732) and under the capacity purchase agreements with other regional carriers is $29 (2009 - $29). Based upon amended
terms as described in Note 2D, the Jazz CPA expires December 31, 2020. The rates under the Jazz CPA are subject to change
based upon, amongst other things, changes in Jazz’s costs and the results of benchmarking exercises, which compare Jazz
costs to other regional carriers, one of which is currently underway. The results of this benchmarking will be implemented
with retroactive effect to January 1, 2010.
Maturity Analysis
Principal and interest repayment requirements as at December 31, 2010 on Long-term debt and capital lease obligations
are as follows:
Principal 2011 2012 2013 2014 2015 Thereafter Total
Long-term debt obligations $ 514 $ 293 $ 363 $ 200 $ 1,103 $ 1,307 $ 3,780
Capital lease obligations 96 105 94 90 144 226 755
$ 610 $ 398 $ 457 $ 290 $ 1,247 $ 1,533 $ 4,535
Interest 2011 2012 2013 2014 2015 Thereafter Total
Long-term debt obligations $ 218 $ 199 $ 186 $ 171 $ 126 $ 103 $ 1,003
Capital lease obligations 68 59 49 39 29 85 329
$ 286 $ 258 $ 235 $ 210 $ 155 $ 188 $ 1,332
Principal repayments in the table above exclude transaction costs and discounts of $78 which are offset against Long-term
debt and capital leases in the Consolidated Statement of Financial Position.
The following is a maturity analysis, based on contractual undiscounted cash flows, for selected financial liabilities. The
analysis includes both the principal and interest component of the payment obligations on long-term debt and is based on
interest rates and the applicable foreign exchange rate effective as at December 31, 2010 and does not include the impact
of the loan facility with GE Japan as described in Note 6. If drawn upon, this loan facility will reduce the net cash flows
by the amount of the related debt maturities refinanced in 2011 and 2012 of $125 and $43, respectively, offset by the
principal and interest repayments under the loan facility.
2011 2012 2013 2014 2015 Thereafter Total
Long-term debt obligations $ 732 $ 492 $ 549 $ 371 $ 1,229 $ 1,410 $ 4,783
Capital lease obligations 164 164 143 129 173 311 1,084
Accounts payable and
accrued liabilities 1,182
- - -
- -
1,182
$ 2,078 $ 656 $ 692 $ 500 $ 1,402 $ 1,721 $ 7,049
Minimum Committed Purchase of Aeroplan Miles
The CPSA between the Corporation and Aeroplan outlines a requirement for the Corporation to purchase a minimum number
of Aeroplan Miles® from Aeroplan. The estimated minimum requirement for 2011 is $216. The annual commitment is
based on 85% of the average total Aeroplan Miles® actually issued in respect of Air Canada flights or Air Canada airline
affiliate products and services in the three preceding calendar years. During 2010, the Corporation purchased $262 from
Aeroplan.