PDF version - Air Canada
PDF version - Air Canada
PDF version - Air Canada
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2009 <strong>Air</strong> <strong>Canada</strong> Annual Report<br />
• The sale and leaseback of three Boeing 777 aircraft. The sale and leaseback transactions were substantially completed<br />
in November 2009 and provided initial cash proceeds of $95 million (net of deposits). Additional net cash proceeds<br />
of $20 million were received in January 2010;<br />
• The sale and leaseback of one Boeing 777 aircraft for aggregate proceeds of $172 million and the requirement<br />
repayment of a debt obligation related to the aircraft of $128 million, which included a prepayment fee of<br />
$14 million;<br />
• An agreement amending the terms of the Jazz CPA, effective August 1, 2009, which provides for a reduction to rates<br />
paid under the agreement;<br />
• Financing arrangements secured by spare parts, spare engines and a Boeing 777 aircraft which provided aggregate<br />
proceeds of $267 million, net of fees of $8 million. As discussed above, $38 million of the spare engine financing was<br />
repaid on closing of the Credit Facility;<br />
• During 2009, <strong>Air</strong> <strong>Canada</strong> entered into various inventory financing arrangements under which it acquired $117 million<br />
of spare parts inventories in exchange for the issuance of bills of exchange. Subsequent to the arrangements,<br />
<strong>Air</strong> <strong>Canada</strong> completed various transactions in relation to certain bills of exchange resulting in gains of $4 million<br />
being recorded in non-operating income (expense) in 2009. As at December 31, 2009, the remaining inventory is<br />
valued at $43 million which represented its estimated net realizable value. The expected final payment due in 2010<br />
under the financing arrangements is $11 million (US$11 million);<br />
• Repayment of pre-delivery financing of $83 million on a Boeing 777 aircraft received during the first quarter of<br />
2009; and<br />
• In 2009, the net return of collateral deposits on fuel derivatives amounted to $285 million, while the settlement of<br />
fuel derivative contracts in favour of counterparties amounted to $280 million.<br />
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