Air Canada 2014 Annual Report Download - page 92

Download and view the complete annual report

Please find page 92 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

9292 2014 Annual Report
FOR THE YEARS ENDED DECEMBER 31, 2014 AND 2013
CANADIAN DOLLARS IN MILLIONS – EXCEPT PER SHARE AMOUNTS
1. GENERAL INFORMATION
The accompanying audited consolidated financial
statements (the “financial statements”) are of
Air Canada (the “Corporation”). The term
“Corporation” also refers to, as the context may
require, Air Canada and/or one or more of its
subsidiaries, including its principal wholly owned
operating subsidiaries, Touram Limited Partnership
doing business under the brand name Air Canada
Vacations® (“Air Canada Vacations”) and Air Canada
rouge LP doing business under the brand name
Air Canada rouge® (“Air Canada rouge”). These
financial statements also include certain aircraft
leasing entities, which are consolidated under
IFRS 10 Consolidated Financial Statements, with
nominal equity owned by other parties.
Air Canada is incorporated and domiciled in Canada.
The address of its registered office is 7373 Côte-Vertu
Boulevard West, Saint-Laurent, Quebec.
Air Canada is Canada’s largest domestic, U.S.
transborder and international airline and the largest
provider of scheduled passenger services in the
Canadian market, the Canada-U.S. transborder
market as well as the international markets to and
from Canada. Certain of the scheduled passenger
services offered on domestic and Canada-U.S.
transborder routes are operated under the brand
name “Air Canada Express” and operated by third
parties such as Jazz Aviation LP (“Jazz”) and Sky
Regional Airlines Inc. (“Sky Regional”) through
capacity purchase agreements (each a “CPA”).
Air Canada also offers scheduled passenger services
on domestic and Canada-U.S. transborder routes
through capacity purchase agreements on other
regional carriers, including those operating aircraft
of 18 seats or less, some of which are referred to as
Tier III carriers. Through Air Canada’s global route
network, virtually every major market throughout
the world is served either directly or through the Star
Alliance network.
Air Canada Cargo, an operating division of Air Canada,
is Canada’s largest provider of air cargo services.
Air Canada offers air cargo services on domestic and
U.S. transborder routes as well as on international
routes between Canada and major markets in Europe,
Asia, South America and Australia.
The Air Canada Leisure Group consists of Air Canada
Vacations and Air Canada rouge. Air Canada
Vacations is a leading Canadian tour operator. 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, Australia 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 rouge launched its operations on
July 1, 2013 and provides scheduled passenger service
within certain of Air Canada’s leisure travel markets
and domestic destinations.
2. BASIS OF PRESENTATION AND SUMMARY OF
SIGNIFICANT ACCOUNTING POLICIES
The Corporation prepares its financial statements
in accordance with generally accepted accounting
principles in Canada (“GAAP”) as set out in the CPA
Canada Handbook – Accounting (“CPA Handbook”)
which incorporates International Financial Reporting
Standards (“IFRS”) as issued by the International
Accounting Standards Board (“IASB”).
These financial statements were approved for issue
by the Board of Directors of the Corporation on
February 10, 2015.
These financial statements are based on the
accounting policies as described below. These policies
have been consistently applied to all the periods
presented, unless otherwise stated.
A. BASIS OF MEASUREMENT
These financial statements have been prepared
under the historical cost convention, except for the
revaluation of cash, cash equivalents and short-
term investments, restricted cash and derivative
instruments which are measured at fair value.
B. PRINCIPLES OF CONSOLIDATION
These financial statements include the accounts
of Air Canada and its subsidiaries. Subsidiaries are
all entities (including structured entities) which
Air Canada controls. For accounting purposes, control
is established by an investor when it is exposed to, or