United states securities and exchange commission

 

Engine Type		Model				At December 31, 2016				At December 31, 2015				At December 31, 2014
V2500			V2527M-A5				3				3				3
V2500			V2527E-A5				4				3				3
V2500			V2527-A5				4				—				—
							11				6				6

 

*	Certain of the Company’s aircraft and engine lease agreements include an option to extend the lease term period. Terms and conditions are subject to market conditions at the time of renewal.

During the year ended December 31, 2016, the Company incorporated 17 aircraft to its fleet (eight of them based on the terms of the Airbus purchase agreement and 9 from a lessor’s aircraft order book). These new aircraft lease agreements were accounted for as operating leases. Also, the Company returned four aircraft to their respective lessors. All the aircraft incorporated through the lessor´s aircraft order book were not subject to sale and leaseback transactions.

Additionally, during 2016 the Company extended the lease term of two aircraft and entered into certain agreements with different lessors to lease five aircraft spare engines which were received during the same period. Such leases were accounted as operating leases and were not subject to sale and leaseback transactions.

On September 19, 2016, the Company received its first A320NEO.

During the year ended December 31, 2015, the Company incorporated seven aircraft to its fleet (five of them based on the terms of the Airbus purchase agreement and two from a lessor’s aircraft order book), and returned one aircraft to a lessor. These new aircraft lease agreements were accounted for as operating leases. Additionally, during August 2015 the Company extended the lease term of three A319CEO, one effective from 2015 and the other two effective from 2016.

 

F-56

Table of Contents

During the year ended December 31, 2014, the Company incorporated eight aircraft to its fleet (three of them based on the terms of the original Airbus purchase agreement and five from a lessor’s aircraft order book), and returned two aircraft to different lessors. Additionally, during October 2014, the Company extended the lease term of one A320CEO.

As of December 31, 2016 and 2015, all of the Company’s aircraft and spare engines lease agreements were accounted for as operating leases.

Provided below is an analysis of future minimum aircraft and engine rent payments in U.S. dollars and its equivalent in Mexican pesos:

 

		Aircraft operating leases								Engine operating leases
		in U.S. dollars				in Mexican pesos (1)				in U.S. dollars				in Mexican pesos (1)
2017		US$	227,087			Ps.	4,692,519			US$	5,004			Ps.	103,404
2018			229,726				4,747,061				2,958				61,133
2019			214,679				4,436,136				2,560				52,894
2020			210,652				4,352,922				1,878				38,807
2021 and thereafter			829,009				17,130,633				4,091				84,536
Total		US$	1,711,153			Ps.	35,359,271			US$	16,491			Ps.	340,774

 

(1)	Using the exchange rate as of December 31, 2016 of Ps.20.6640.

Such amounts are determined based on the stipulated rent contained within the agreements without considering renewals and on the prevailing exchange rate and interest rates at December 31, 2016.

b) Rental of land and buildings. The Company has entered into land and property lease agreements with third parties for the premises where it provides its services and where its offices are located. These leases are recognized as operating leases.

Provided below is an analysis of future minimum rental of land and building payments in Mexican pesos and its equivalent to U.S. dollars:

 

		Operating leases in U.S. dollars				Operating leases in Mexican pesos
2017		US$	6,498			Ps.	134,284
2018			795				16,419
2019			399				8,235
2020			328				6,784
Total		US$	8,020			Ps.	165,722