ACE Aviation Holdings Inc.
Climate Impact & Sustainability Data (2008)
Reporting Period: 2008
Environmental Metrics
Climate Goals & Targets
Environmental Challenges
- Liquidity risk due to weakening demand for air travel and cargo services, market volatility in fuel, foreign exchange, and interest rates, increased competitive pressures, and restrictive terms under financing arrangements.
- Air Canada's solvency deficit in registered pension plans ($2,835 million as of January 1, 2009).
- Potential liabilities related to investigations of alleged anti-competitive cargo pricing activities.
Mitigation Strategies
- Secured term credit facility of $600 million (ACE's participation: $150 million), extended labor agreements, pension funding agreements, agreement with a supplier for non-refundable proceeds, amendments to credit card processing agreements, extension of a short-term loan, sale and leaseback of aircraft, inventory financing, cost containment initiatives, and capacity adjustments.