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Leases | 12 Months Ended
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Dec. 31, 2019
Leases |
Leases | 14. Leases The most significant leases are as follows: a) Aircraft and engine represent the Company´s most significant lease agreements. At December 31, 2019, the Company leases 81 aircraft (77 and 71 as of December 31, 2018 and 2017, respectively) and 14 spare engines under operating leases (10 and eighth as of December 31, 2018 and 2017, respectively) that have maximum terms through 2033. These leases are generally guaranteed by either deposit in cash or letters of credits. Composition of the fleet and spare engines, leases*:
|  |  |  | At December |  | At December |  | At December
Aircraft Type |  | Model |  | 31, 2019 |  | 31, 2018 |  | 31, 2017
A319 |  | 132 |  | 3 |  | 4 |  | 6
A319 |  | 133 |  | 4 |  | 4 |  | 6
A320 |  | 233 |  | 39 |  | 39 |  | 39
A320 |  | 232 |  | 2 |  | 4 |  | 4
A320NEO |  | 271N |  | 17 |  | 12 |  | 6
A321 |  | 231 |  | 10 |  | 10 |  | 10
A321NEO |  | 271N |  | 6 |  | 4 |  | —
|  |  |  | 81 |  | 77 |  | 71
Engine spare |  |  |  | At December |  | At December |  | At December
Type |  | Model |  | 31, 2019 |  | 31, 2018 |  | 31, 2017
V2500 |  | V2524-A5 |  | 2 |  | — |  | —
V2500 |  | V2527M-A5 |  | 3 |  | 3 |  | 3
V2500 |  | V2527E-A5 |  | 3 |  | 3 |  | 3
V2500 |  | V2527-A5 |  | 2 |  | 2 |  | 2
PW1100 |  | PW1127G-JM |  | 3 |  | 2 |  | —
PW1100 |  | PW1133G-JM |  | 1 |  | — |  | —
|  |  |  | 14 |  | 10 |  | 8
* 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, 2019, the Company added seven new leased aircraft to its fleet (three A320 NEO´s acquired through sale and leaseback transactions under our existing Airbus purchase agreement and four obtained directly from the lessor´s). Also, the Company extended the lease term of one spare engine (effective from 2019) and returned two aircraft to their respective lessors. All the aircraft incorporated through the lessor´s aircraft order book was not subject to sale and leaseback transactions. During the year ended December 31, 2019, the Company also leased two NEO spare engines (based on the terms of the Pratt and Whitney purchase agreement FMP) and two CEO spare engines to its fleet. These four engines incorporated were subject to sale and leaseback transactions and their respective lease agreements were accounted as leases. Additionally, during 2019 the Company extended the lease term of one spare engine (effective from November 2019). During the year ended December 31, 2018, the Company added ten new leased aircraft to its fleet (acquired three A320 NEO’s through sale leaseback transactions under our existing Airbus purchase agreement and seven obtained directly from the lessors). Also, the Company extended the lease term of Aircraft (effective from 2019) and two spare engines (effective from February and April 2018), and returned four aircraft to their respective lessors. During the year ended December 31, 2018, the Company also added two NEO spare engines to its fleet based on the terms of the Pratt and Whitney purchase agreement (FMP). These two engines incorporated were subject to sale and leaseback transactions. During the year ended December 31, 2017, the Company added five aircraft to its fleet (acquired one A320 NEO’s through sale leaseback transactions under our existing Airbus purchase agreement and four obtained directly from the lessors). Also, the Company returned three 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 2017 the Company extended the lease term of three aircraft (effective from 2018) and two spare engines (effective from July 2017 and September 2017, respectively). Such leases were not subject to sale and leaseback transactions. Set out below are the carrying amounts of right-of-use assets recognized and the movements during the period:
|  |  |  |  | Spare engine |  | Land and |  |
|  | Aircraft leases |  | leases |  | building leases |  | Total
As at 1 January 2017 (adjusted) |  | Ps. | 23,047,879 |  | Ps. | 220,554 |  | Ps. | 231,648 |  | Ps. | 23,500,081
Additions |  |  | 4,665,330 |  |  | 157,225 |  |  | 9,149 |  |  | 4,831,704
Depreciation on right of use assets |  |  | (3,306,249) |  |  | (77,750) |  |  | (53,904) |  |  | (3,437,903)
As at 31 December 2017 (adjusted) |  |  | 24,406,960 |  |  | 300,029 |  |  | 186,893 |  |  | 24,893,882
Additions |  |  | 10,585,188 |  |  | 387,480 |  |  | 59,194 |  |  | 11,031,862
Depreciation on right of use assets |  |  | (3,865,979) |  |  | (107,813) |  |  | (69,899) |  |  | (4,043,691)
As at 31 December 2018 (adjusted) |  |  | 31,126,169 |  |  | 579,696 |  |  | 176,188 |  |  | 31,882,053
Additions |  |  | 6,676,492 |  |  | 230,200 |  |  | 42,992 |  |  | 6,949,684
Depreciation on right of use assets |  |  | (4,490,572) |  |  | (132,698) |  |  | (79,701) |  |  | (4,702,971)
As at 31 December 2019 |  | Ps. | 33,312,089 |  | Ps. | 677,198 |  | Ps. | 139,479 |  | Ps. | 34,128,766
Set out below are the carrying amounts of lease liabilities and the movements during the period:
|  |  |  | 2018 |  | 2017
|  | 2019 |  | (Adjusted) |  | (Adjusted)
As at 1 January |  | Ps. | 39,565,146 |  | Ps. | 32,523,704 |  | Ps. | 32,711,793
Additions |  |  | 7,186,613 |  |  | 11,038,578 |  |  | 4,897,420
Accretion of interest |  |  | 2,037,540 |  |  | 1,683,330 |  |  | 1,381,680
Foreign exchange effect |  |  | (1,772,452) |  |  | 30,441 |  |  | (1,434,291)
Payments |  |  | (6,499,802) |  |  | (5,710,907) |  |  | (5,032,898)
As at 31 December |  |  | 40,517,045 |  |  | 39,565,146 |  |  | 32,523,704
Current |  | Ps. | 4,720,505 |  | Ps. | 4,976,454 |  | Ps. | 4,213,417
Non-current |  |  | 35,796,540 |  |  | 34,588,692 |  |  | 28,310,287
The following are the amounts recognized in profit or loss:
|  |  |  | As of December |  | As of December
|  | As of December |  | 31, 2018 |  | 31, 2017
|  | 31, 2019 |  | (Adjusted) |  | (Adjusted)
Depreciation of right-of-use assets |  | Ps. | (4,702,971) |  | Ps. | (4,043,691) |  | Ps. | (3,437,903)
Interest expense on lease liabilities |  |  | (2,128,162) |  |  | (1,755,978) |  |  | (1,428,924)
Aircraft and engine variable expenses |  |  | (961,657) |  |  | (956,010) |  |  | (1,429,595)
Total amount recognized in profit or loss |  | Ps. | (7,792,790) |  | Ps. | (6,755,679) |  | Ps. | (6,296,422)
The Company had total cash outflows for leases of Ps.6,499,802 in 2019 (Ps.5,710,907 in 2018 and Ps.5,032,898 in 2017). i) Return obligations The aircraft lease agreements of the Company also require that the aircraft and engines be returned to lessors under specific conditions of maintenance. The costs of return, which in no case are related to scheduled major maintenance, are estimated and recognized ratably as a provision from the time it becomes likely such costs will be incurred and can be estimated reliably. These return costs are recognized on a straight-line basis as a component of supplemental rent and the provision is included as part of other liabilities, through the remaining lease term. The Company estimates the provision related to airframe, engine overhaul and limited life parts using certain assumptions including the projected usage of the aircraft and the expected costs of maintenance tasks to be performed. For the years ended December 31, 2019, 2018 and 2017, the Company expensed as supplemental rent Ps.680,964, Ps.659,106 and Ps.851,410, respectively.

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- Definition The entire disclosure for leases. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Name IFRS -Number 16 -IssueDate 2019-01-01 -Section Presentation -URI http://eifrs.ifrs.org/eifrs/xifrs-link?type=IFRS&num=16&code=ifrs-tx-2019-en-r&doctype=Standard&dita_xref=IFRS16_g47-50_TI -URIDate 2019-03-27 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Name IFRS -Number 16 -IssueDate 2019-01-01 -Section Disclosure -URI http://eifrs.ifrs.org/eifrs/xifrs-link?type=IFRS&num=16&code=ifrs-tx-2019-en-r&doctype=Standard&dita_xref=IFRS16_g51-60_TI -URIDate 2019-03-27 + Details
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