Air Canada 2013 Annual Report Download - page 50

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2013 Air Canada Annual Report
50
(Canadian dollars in millions) 2014 2015 2016 2017 2018 Thereafter Total
Principal
Long-term debt obligations $ 312 $ 613 $317 $426 $309 $ 2,092 $ 4,069
Finance lease obligations 62 61 26 27 30 122 328
Total principal obligations 374 674 343 453 339 2,214 4,397
Interest
Long-term debt obligations 229 192 172 180 137 176 1,086
Finance lease obligations 30 23 19 16 13 37 138
Total interest obligations 259 215 191 196 150 213 1,224
Total long-term debt and finance
lease obligations $ 633 $ 889 $534 $649 $489 $ 2,427 $ 5,621
Operating lease obligations $ 359 $ 306 $250 $219 $191 $ 419 $ 1,744
Committed capital expenditures $ 916 $ 727 $1,067 $1,378 $643 $ 255 $ 4,986
Total obligations $ 1,908 $ 1,922 $1,851 $2,246 $1,323 $ 3,101 $ 12,351
EETC financing related to one
Boeing 777 aircraft (principal and
interest) $ 14 $ 14 $14 $13 $36 $ 112 $ 203
Total obligations, including the
impact of the EETC financing
related to one Boeing 777
aircraft(1)(2) $ 1,922 $ 1,936 $1,865 $2,259 $1,359 $ 3,213 $ 12,554
(1) Total contractual obligations exclude commitments for goods and services required in the ordinary course of business. Also excluded are other long-term liabilities mainly
due to reasons of uncertainty of timing of cash flows and items that are non-cash in nature.
(2) The table above excludes the future minimum non-cancelable commitment under the Jazz CPA of $801 million in 2014, the future minimum non-cancelable commitment
under capacity purchase agreements with other regional carriers of $109 million in 2014 and the minimum annual commitment to purchase Aeroplan® Miles from
Aeroplan of $218 million for 2014. Future commitments for 2015 and beyond are not yet determinable.
Covenants in Credit Card Agreements
Air Canada has various agreements with companies that process customer credit card transactions. Approximately 85% of
Air Canada’s sales are processed using credit cards, with remaining sales processed through cash based transactions.
Air Canada receives payment for a credit card sale generally in advance of when the passenger transportation is provided.
The terms of Air Canada’s principal credit card processing agreements for credit card processing services in North America are
in effect for another four years each, and the agreements contain triggering events upon which the Corporation is required to
provide the credit card processor with cash deposits. The obligation to provide cash deposits and the required amount of
deposits are each based upon a matrix measuring, on a quarterly basis, both a fixed charge coverage ratio for Air Canada and
the unrestricted cash and short-term investments of the Corporation. In 2013, Air Canada made no cash deposits under these
agreements (nil in 2012).
Air Canada also has agreements with another processor for the provision of certain credit card processing services
requirements for markets other than North America and for its cargo operations worldwide where such agreements also
contain deposit obligations.
Ratings
Air Canada’s corporate credit and/or Air Canada’s New Senior Notes are rated (as of the dates indicated below) by the
following rating agencies:
• Moody’s Investors Service, Inc. (“Moody’s”);
• Standard & Poor’s Rating Services (“Standard & Poor’s”);
• Fitch Ratings, Inc. (“Fitch”); and
• DBRS Limited (“DBRS”).