Air Canada 2011 Annual Report Download - page 119

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2011 Consolidated Financial Statements and Notes
119
Non-cancellable Sublease Receipts
The Corporation subleases 43 aircraft and 11 spare engines which have final maturities ranging from 2012 to 2015 and the
future minimum rentals receivable under subleases amount to $181 using year end exchange rates.
2012 2013 2014 2015 2016 Thereafter Total
Subleases $ 88 $ 49 $ 25 $ 15 $ 4 $ – $ 181
For accounting purposes, the Corporation acts as an agent and subleases certain aircraft to Jazz on a flow-through basis, which
are reported net on the statement of operations. These subleases relate to 25 Bombardier CRJ-200 aircraft and 15 Bombardier
CRJ-705 aircraft which have final maturities ranging from 2015 to 2024. The sublease revenue and lease expense related to
these aircraft each amounted to $75 in 2011 (2010 – $79) The operating lease commitments under these aircraft, which are
recovered from Jazz, are not included in the aircraft operating lease commitments table above but are summarized as follows:
2012 2013 2014 2015 2016 Thereafter Total
Jazz flow – through leases $ 77 $ 78 $ 78 $ 75 $ 70 $ 390 $ 768
The subleases with Jazz have the same terms and maturity as the Corporation’s corresponding lease commitments to the
lessors.
The future minimum non-cancellable commitment for the next 12 months under the Jazz CPA is approximately $760 (2010 –
$749) and under the capacity purchase agreements with other regional carriers is $57 (2010 – $29). 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. Rate negotiations and one of the benchmarking exercises are
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, 2011 on Long-term debt and finance lease obligations are
as follows:
Principal 2012 2013 2014 2015 2016 Thereafter Total
Long-term debt obligations $ 367 $ 535 $ 261 $ 1,261 $ 455 $ 1,090 $3,969
Finance lease obligations 57 61 57 52 25 174 426
$ 424 $ 596 $ 318 $ 1,313 $ 480 $ 1,264 $ 4,395
Interest 2012 2013 2014 2015 2016 Thereafter Total
Long-term debt obligations $ 231 $ 226 $ 193 $ 142 $ 51 $ 108 $ 951
Finance lease obligations 41 34 28 22 18 65 208
$ 272 $ 260 $ 221 $ 164 $ 69 $ 173 $ 1,159
Principal repayments in the table above exclude transaction costs and discounts of $65 which are offset against Long-term
debt and finance leases in the Consolidated Statement of Financial Position.