Air Canada 2014 Annual Report Download - page 135

Download and view the complete annual report

Please find page 135 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

135
2014 Consolidated Financial Statements and Notes 135
2014 Consolidated Financial Statements and Notes
19. INVESTMENTS IN AVEOS
In 2012, as a result of Aveos Fleet Performance Inc.
(“Aveos”) ceasing operations and filing for court
protection pursuant to the Companies’ Creditors
Arrangement Act (“CCAA”), Air Canada reduced the
carrying value of its investment in Aveos Holding
Company, Aveos’ parent company, as well as the
carrying value of a long-term note receivable from
Aveos to nil and recorded an aggregate loss on
investments of $65 in Non-operating expense. In
addition, Air Canada recorded a liability of $55, which
was charged to Discontinued Operations, related
to Air Canada’s commitment under a separation
program. For the 12 months ended December 31,
2013, a cash outflow of $29 was generated in relation
to this separation program ($26 in 2012).
A settlement and termination agreement pertaining
to operating amounts owing between Air Canada and
Aveos, including disputed invoices, was concluded
during 2013. This agreement resulted in the set-off,
settlement and release of all outstanding invoices
between Air Canada and Aveos. Settlement of the
Pension and Benefits Agreement was concluded in
October 2013 with payment in trust to Aveos, for
distribution to identified Aveos eligible recipients.
The letter of credit of $20 previously issued in favour
of Aveos was returned to Air Canada. Following this,
obligations under the other post-retirement and post-
employment benefit plans pertaining to transferred
unionized Aveos employees are no longer included in
the Corporation’s consolidated financial statements
as at December 31, 2013. In 2012, OSFI ordered the
termination of Aveos’ defined benefit pension plan
and, as a result, the assets and liabilities accruing
prior to July 14, 2011 in respect of transferred Aveos
employees could not be transferred to Aveos’ plans
and remain under Air Canada’s pension plans.
A reconciliation of the total amounts reported by
geographic region for Passenger revenues and Cargo
revenues on the consolidated statement of operations
is as follows:
2014 2013
PASSENGER REVENUES
Canada $ 4,381 $ 4,237
U.S. Transborder 2,379 2,176
Atlantic 2,554 2,263
Pacific 1,710 1,618
Other 780 727
$ 11,804 $ 11,021
2014 2013
CARGO REVENUES
Canada $ 66 $ 63
U.S. Transborder 20 18
Atlantic 191 171
Pacific 190 185
Other 35 37
$ 502 $ 474
Passenger and cargo revenues are based on the
actual flown revenue for flights with an origin and
destination in a specific country or region. Atlantic
refers to flights that cross the Atlantic Ocean with
origins and destinations principally in Europe. Pacific
refers to flights that cross the Pacific Ocean with
origins and destinations principally in Asia and
Australia. Other passenger and cargo revenues refer
to flights with origins and destinations principally in
South America and the Caribbean.
Other operating revenues are principally derived from
customers located in Canada and consist primarily
of revenues from the sale of the ground portion of
vacation packages, ground handling services, and
other airline-related services, as well as revenues
related to the lease or sublease of aircraft to third
parties.
20. GEOGRAPHIC INFORMATION