Air Canada 2010 Annual Report Download - page 3

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3
1. Highlights .................................................................................................................................................. 2
Message from the President and CEO of Air Canada ............................................................................. 4
Management’s Discussion and Analysis of Results and Financial Condition .................................... 6
2. Introduction .............................................................................................................................................. 6
3. About Air Canada ..................................................................................................................................... 7
4. Strategy ..................................................................................................................................................... 8
5. Overview ................................................................................................................................................... 11
6. Results of Operations – Fourth Quarter 2010 versus Fourth Quarter 2009 ............................... 12
7. Results of Operations – Full Year 2010 versus Full Year 2009 ........................................................ 23
8. Fleet ....... .................................................................................................................................................... 32
9. Financial and Capital Management ...................................................................................................... 34
9.1 Liquidity .............................................................................................................................................. 34
9.2 Financial Position .............................................................................................................................. 35
9.3 Adjusted Net Debt............................................................................................................................ 36
9.4 Working Capital ................................................................................................................................ 38
9.5 Consolidated Cash Flow Movements............................................................................................ 39
9.6 Capital Expenditures and Related Financing Arrangements .................................................... 40
9.7 Contractual Obligations .................................................................................................................. 41
9.8 Pension Funding Obligations .......................................................................................................... 42
9.9 Share Information ............................................................................................................................ 44
10. Quarterly Financial Data........................................................................................................................ 45
11. Selected Annual Information ................................................................................................................ 46
12. Financial Instruments and Risk Management .................................................................................... 47
13. Off-Balance Sheet Arrangements......................................................................................................... 51
14. Related Party Transactions .................................................................................................................... 53
15. Critical Accounting Estimates ............................................................................................................... 55
16. Accounting Policies ................................................................................................................................. 59
16.1 Update on the Progress of the International Financial Reporting Standards
Conversion Plan .............................................................................................................................. 59
17. Sensitivity of Results .............................................................................................................................. 73
18. Risk Factors ............................................................................................................................................... 74
19. Controls and Procedures ........................................................................................................................ 83
20. Non-GAAP Financial Measures ............................................................................................................. 84
21. Glossary ..................................................................................................................................................... 85
Management’s Report .................................................................................................................................... 86
Auditors’ Report .............................................................................................................................................. 87
Consolidated Financial Statements and Notes 2010 .............................................................................. 88
Officers and Directors .................................................................................................................................... 142
Investor and Shareholder Information........................................................................................................ 143
Official Languages at Air Canada ................................................................................................................. 143
Corporate Profile ............................................................................................................................................. 144
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