Air Canada 2014 Annual Report Download - page 125

Download and view the complete annual report

Please find page 125 of the 2014 Air Canada annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 140

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80
  • 81
  • 82
  • 83
  • 84
  • 85
  • 86
  • 87
  • 88
  • 89
  • 90
  • 91
  • 92
  • 93
  • 94
  • 95
  • 96
  • 97
  • 98
  • 99
  • 100
  • 101
  • 102
  • 103
  • 104
  • 105
  • 106
  • 107
  • 108
  • 109
  • 110
  • 111
  • 112
  • 113
  • 114
  • 115
  • 116
  • 117
  • 118
  • 119
  • 120
  • 121
  • 122
  • 123
  • 124
  • 125
  • 126
  • 127
  • 128
  • 129
  • 130
  • 131
  • 132
  • 133
  • 134
  • 135
  • 136
  • 137
  • 138
  • 139
  • 140

125
2014 Consolidated Financial Statements and Notes 125
The subleases with Jazz have the same terms and maturity as the Corporation’s corresponding lease
commitments to the lessors.
The Corporation leases and subleases certain aircraft to Sky Regional, which are charged back to Air Canada
through the CPA with Sky Regional. These are reported net on the consolidated statement of operations.
The leases and subleases relate to five Bombardier Q400 aircraft and 15 Embraer 175 aircraft. The lease and
sublease revenue and expense related to these aircraft each amount to $41 in 2014 (2013 – $27) and are not
included in the non-cancellable lease and sublease receipts above.
MATURITY ANALYSIS
Principal and interest repayment requirements as at December 31, 2014 on Long-term debt and finance lease
obligations are as follows:
PRINCIPAL 2015 2016 2017 2018 2019 THEREAFTER TOTAL
Long-term debt
obligations
$ 418 $ 381 $ 505 $ 484 $ 1,485 $ 1,751 $ 5,024
Finance lease obligations 66 28 29 32 35 93 283
$ 484 $ 409 $ 534 $ 516 $ 1,520 $ 1,844 $ 5,307
INTEREST 2015 2016 2017 2018 2019 THEREAFTER TOTAL
Long-term debt
obligations
$ 262 $ 242 $ 243 $ 194 $ 167 $ 152 $ 1,260
Finance lease obligations 25 20 17 14 11 27 114
$ 287 $ 262 $ 260 $ 208 $ 178 $ 179 $ 1,374
Principal repayments in the table above exclude transaction costs of $91 which are offset against Long-term
debt and finance leases in the consolidated statement of financial position. The following is a maturity analysis,
based on contractual undiscounted cash flows, for 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, 2014.
2015 2016 2017 2018 2019 THEREAFTER TOTAL
Long-term debt
obligations $ 680 $ 623 $ 74 8 $ 678 $ 1,652 $ 1,903 $ 6,284
Finance lease obligations 91 48 46 46 46 120 397
Accounts payable and
accrued liabilities
1,259 -----1,259
$ 2,030 $ 671 $ 794 $ 724 $ 1,698 $ 2,023 $ 7,940
MINIMUM COMMITTED PURCHASE OF AEROPLAN MILES
The CPSA between the Corporation and Aeroplan imposes a requirement for the Corporation to purchase a
minimum number of Aeroplan Miles® from Aeroplan. The estimated minimum requirement for 2015 is $211.
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 2014, the Corporation purchased $248 of Aeroplan Miles® from Aeroplan.