Air Canada to make paying down debt priority over increasing fleet
Air Canada announced plans to make paying down its debt a priority over increasing its fleet of aircraft (CBC News, 23-Sep-2010). The carrier is due to take delivery of its first B787 in 2H2013. CFO Michael Rousseau stated Air Canada expects capital spending for 2010 and 2011 to be CAD150 million annually, not counting maintenance expenses that will be recorded under new international financial accounting rules.
Air Canada: “We have almost a billion dollars of debt coming due in the next two years and certainly we would like to pay some, if not all, of that back. We're being very, very disciplined about adding capacity. We have route rights to virtually everywhere in the world, so we fly where we want to. But we need to make money. The airline has financing commitments already in place of CAD3.1 billion, covering 31 of the 37 expected deliveries.” Michael Rousseau, Chief Financial Officer of Air Canada. Source: CBC News, 23-Sep-2010.