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WestJet 2009 Annual Report 23
required in the ordinary course of business, are indicated in the
table below:
with the reservation system have been included in the operating
leases and commitments caption in the table above.
Capital resources
During 2009, we took delivery of 10 leased aircraft: seven 737-
700s and three 737-800s, increasing our total registered fl eet to
86 aircraft as at December 31, 2009. However, we subsequently
purchased one of the leased 737-800 aircraft from the lessor with
cash. During the year, we announced changes to our fl eet plan,
as summarized in the revised delivery schedule on the following
page. These changes provide for a smoother aircraft delivery
schedule and a more fl exible fl eet plan. Under our previous
schedule, we would have grown our fl eet to 121 aircraft by 2013.
The combination of deferred delivery dates on 16 of our existing
aircraft orders, the purchase of an additional 14 aircraft and 23
leases expiring between 2013 and 2016, each with the option
to renew, gives us the fl exibility to end 2016 with a fl eet size
between 112 and 135. As at December 31, 2009, we had existing
commitments to take delivery of an additional 49 aircraft, for
a total committed fl eet of 135 by 2016 if all 23 lease renewal
options are exercised.
Contractual obligations and commitments
Our contractual obligations for each of the next five years,
which do not include commitments for goods and services
We currently have 33 aircraft under operating leases. We have
entered into agreements with independent third parties to lease
six additional 737-700 aircraft and fi ve 737-800 aircraft for terms
ranging between eight and 10 years, to be delivered throughout
2010 to 2012. Although the current obligations related to our
aircraft operating lease agreements are not recognized on our
balance sheet, we include these commitments in assessing
our overall leverage through our adjusted debt-to-equity and
adjusted net debt to EBITDAR ratios.
We signed a six-year agreement with Bell ExpressVu to provide
satellite programming. The agreement commenced in 2004 and
can be renewed for an additional four years. During 2009, we
amended our agreement with LiveTV to install, maintain and
operate live satellite television for all of our aircraft for a term
of 10 years. The minimum commitment amounts associated with
these agreements have been included in the operating leases
and commitments caption in the table above.
In 2008, we signed an agreement with Sabre to provide us with a
licence to access and use its reservation system, SabreSonic, for
a term of eight years. The minimum contract amounts associated
($ in thousands) Total 2010 2011 2012 2013 2014 Thereafter
Long-term debt repayments $ 1,219,777 $ 171,223 $ 183,924 $ 169,992 $ 169,750 $ 170,019 $ 354,869
Capital lease obligations(1) 6,822 943 282 245 245 245 4,862
Operating leases and commitments(2) 1,613,350 189,892 205,904 209,340 210,489 202,875 594,850
Purchase obligations(3) 1,749,300 29,724 114,834 269,490 285,479 303,612 746,161
Total contractual obligations $ 4,589,249 $ 391,782 $ 504,944 $ 649,067 $ 665,963 $ 676,751 $1,700,742
(1) Includes weighted average imputed interest at 5.28 per cent totaling $2,720.
(2) Relates to operating leases and commitments for aircraft, land, buildings, equipment, computer hardware, software licenses and satellite programming. The
obligations of these operating leases, where applicable, in US dollars are: 2010 - $159,106; 2011 - $182,562; 2012 - $187,896; 2013 - $191,963; 2014 - $187,498;
and thereafter $520,002.
(3) Relates to purchases of aircraft, as well as amounts to be paid for live satellite television systems on purchased and leased aircraft. These purchase obligations in US
dollars are: 2010 - $28,282; 2011 - $109,265; 2012 - $256,420; 2013 - $271,633; 2014 - $288,887; and thereafter $709,972.