Air Canada 2010 Annual Report Download - page 92

2010 Air Canada Annual Report
92
1. BASIS OF PRESENTATION AND NATURE OF OPERATIONS
A) BASIS OF PRESENTATION
The accompanying consolidated financial statements are of Air Canada (the “Corporation”). The term “Corporation” refers
to, as the context may require, Air Canada and/or one or more of Air Canada’s subsidiaries.
These consolidated financial statements are expressed in millions of Canadian dollars and are prepared in accordance with
generally accepted accounting principles in Canada (“GAAP”).
Certain comparative figures have been reclassified to conform to the financial statement presentation adopted in the
current year.
B) NATURE OF OPERATIONS
The consolidated financial statements of Air Canada include wholly-owned subsidiaries of Air Canada, including Air Canada
Cargo Limited Partnership (“Air Canada Cargo”) up to and including November 30, 2009, ACGHS Limited Partnership (“Air
Canada Ground Handling Services” or “ACGHS”) up to and including November 30, 2009 and Touram Limited Partnership
(“Air Canada Vacations”). These consolidated financial statements also include certain aircraft and engine leasing entities
and fuel facility corporations, which are consolidated under Accounting Guideline 15 – Consolidation of Variable Interest
Entities (Note 2Z).
Effective December 1, 2009, the operations of Air Canada Cargo and Air Canada Ground Handling Services, previously
operated by wholly-owned subsidiaries of Air Canada, were wound up into Air Canada. These wind-ups had no impact on
the consolidated financial statements.
Air Canada is Canada’s largest domestic, US transborder and international airline and the largest provider of scheduled
passenger services in the Canadian market, the Canada-US transborder market as well as the international markets to
and from Canada. Certain of the scheduled passenger services offered on domestic and Canada-US transborder routes
are provided by Jazz Aviation LP (“Jazz”) (the successor to Jazz Air LP) through a capacity purchase agreement between
Air Canada and Jazz (the “Jazz CPA”). Through Air Canada’s global route network, virtually every major market throughout
the world is served either directly or through the Star Alliance network. In addition, Air Canada provides certain passenger
charter services under the brand name “AC Jetz”.
Air Canada offers air cargo services on domestic and US transborder routes using cargo capacity on aircraft operated
by Air Canada and Jazz. Prior to December 1, 2009, these services were provided by Air Canada Cargo. Air Canada offers
international cargo services on routes between Canada and major markets in Europe, Asia, South America and Australia
using cargo capacity on Boeing 777 and other wide body aircraft operated by Air Canada.
Air Canada Ground Handling Services provided passenger handling services to Air Canada, Jazz and other airlines with a
primary focus on Canadian stations. Services covered included passenger check-in, gate management, baggage and cargo
handling and processing, cabin cleaning, de-icing as well as aircraft ramp services. Effective December 1, 2009 with the
wind-up of ACGHS, Air Canada offers these services directly.
Air Canada Vacations is one of Canada’s leading tour operators. Based in Montreal and Toronto, Air Canada Vacations
operates its business in the outbound leisure travel market (Caribbean, Mexico, U.S., Europe, Central and South America,
South Pacific and Asia) by developing, marketing and distributing vacation travel packages. Air Canada Vacations also offers
cruise packages in North America, Europe and the Caribbean.
Air Canada is managed as one operating segment based on how financial information is produced internally for the purposes
of making operating decisions.
For the Years Ended December 31, 2010 and 2009 (Canadian dollars in millions –except per share amounts)