Air Canada

Media Advisory - Air Canada to Present Strategic Review for Analysts
Friday September 24, 1:02 pm ET


MONTREAL, Sept. 24 /CNW Telbec/ - Air Canada will hold a conference call for analysts on September 27, 2004 to present the Corporation's Strategic Review. Media may access this call on a listen-in basis; details are as follows:

          §    ANALYST CONFERENCE CALL / AUDIO WEBCAST

          §    Date:            Monday, September 27, 2004

          §    Time:            2:00 p.m. ET

          §    Webcast:         www.startcast.com/shows/20/A0001 Note: This is a
          §                     listen-only audio webcast. Windows Media Player is
          §                     required to listen to the broadcast; please download
          §                     well in advance of call.

          §    By telephone:    1-800-387-6216 toll free or (416) 405-9328. Please allow
          §                     10 minutes to be connected to the conference call.

          §    Replay           Instant replay will be available beginning approximately
          §                     one hour after the call at 1-800-408-3053 toll free or
          §                     (416) 695-5800 and enter passcode 3100113(pound key)
          §                     until midnight ET October 4, 2004.

          §    Note:            The Strategic Review Presentation will be available for
          §                     viewing at www.aircanada.ca/about-us/investor/index.html
          §                     approximately one hour before the conference call /
          §                     audio web cast begins.

Air Canada schließt Kaufvereinbarung über 45 Embraer-Flugzeuge


MONTREAL (Dow Jones-VWD)--Die Air Canada, Montreal, hat mit dem brasilianischen Flugzeughersteller Embraer einen definitiven Kaufvertrag über 45 Maschinen unterzeichnet. Zudem wurde eine Option über die Lieferung von weiteren 45 Flugzeugen vereinbart, wie Air Canada am Mittwoch mitteilte. die Auslieferung soll im November 2005 beginnen. Die Vereinbarung bestätige eine zweite Tranche des im vergangenen Jahr bereits genannten Kaufprogramms über insgesamt 105 kleine Flugzeuge. -Von Judy McKinnon, Dow Jones Newswires; +49 (0) 6196 405 395 unternehmen.de@dowjones.com (ENDE) Dow Jones Newswires/29.9.2004/nas/rio

- Domestic passenger load factor at 79.3% - highest ever for September - System passenger load factor at 79.2% - highest ever for September
MONTREAL, Oct. 6 /CNW Telbec/ - Air Canada reported a system load factor of 79.2 percent in September 2004, the highest ever for September. The mainline carrier flew 9.5 percent more revenue passenger miles (RPMs) in September 2004 than in September 2003, according to preliminary traffic figures. Overall, capacity increased by 1.5 percent, resulting in a load factor of 79.2 percent, compared to 73.4 percent in September 2003; an increase of 5.8 percentage points. In the domestic market, capacity decreased by 10.3 percent while traffic increased 0.5 percent resulting in a domestic load factor of 79.3 percent - an 8.6 percentage point increase year over year.
Jazz, Air Canada's regional airline subsidiary, flew 7.9 percent more revenue passenger miles in September 2004 than in September 2003, according to preliminary traffic figures. Capacity decreased by 10.8 percent, resulting in a load factor of 66.2 percent, compared to 54.7 percent in September 2003; an increase of 11.5 percentage points.

"In September ongoing disciplined capacity management and the growing popularity of Air Canada's web fares resulted in a sixth consecutive month of record load factors," said Rob Peterson, Executive Vice President and Chief Financial Officer. "Our record domestic performance was also supported by the strong traffic flows across Canada from international services, particularly from Japan. We are clearly the airline of choice for the lowest fares to the greatest number of destinations on an everyday basis."


biz.yahoo.com/cnw/041006/e_aircdn_traffic_1.html

"The airline again posted a record load factor every month this quarter while operating at strong on time performance and flight completion levels. While the third quarter is our seasonally strongest quarter, the results achieved point to an airline that is not only profitable in a difficult fuel and North American yield environment, but also to an airline that is running well operationally.

"Our new business model and product strategy is producing the desired results and we are seeing growing customer confidence in Air Canada as the airline of choice for the lowest fares to the greatest number of destinations on an everyday basis.

"The progress reported today was made possible through the hard work, dedication and sheer resilience of Air Canada's employees. I thank them for their ongoing support and willingness to accept the necessary change to ensure the airline's successful restructuring. And on behalf of all of us at Air Canada, I thank each and every customer who supported us during the past eighteen months. We remain committed to earn their ongoing loyalty through excellent customer service and as always an uncompromising focus on safety," concluded Mr. Milton.

As a result of higher overall system traffic and yield, consolidated passenger revenues have shown a marked recovery in all markets with the exception of the US transborder market. Air Canada estimates that consolidated system passenger revenues will increase by approximately 12 per cent over the third quarter of 2003. Passenger revenue per ASM (RASM) is expected to be up approximately 6 per cent over 2003 levels.

Air Canada anticipates unit cost reductions of approximately 4 per cent from the same quarter last year (11 per cent excluding fuel) on an ASM capacity increase of 6 per cent. These unit cost reductions are mainly due to cost reduction initiatives undertaken during the restructuring process which largely began to take effect in the third quarter of 2003.

Current record high fuel prices are a concern, however, the increase in fuel expense has been partially mitigated by a fuel surcharge in effect on US transborder and international travel and by a stronger Canadian dollar.

As at October 13, 2004, the Corporation's consolidated cash balance, measured on the basis of cash in its bank accounts, amounted to approximately $1.9 billion.

As in prior quarters, as a result of restructuring under CCAA, the third quarter 2004 results will reflect a number of very significant reorganization and restructuring charges directly associated with the restructuring which will be included in net income. Air Canada's complete 2004 third quarter results will be made available on Air Canada's website aircanada.com and at SEDAR.com by November 15, 2004. A copy may also be obtained on request by contacting Shareholder Relations at (514) 422-7578.






This Season's 'Hot' Ticket: New Air Canada 'Sun Pass' Multi-Trip Pass Offers Great Value and Flexibility for Snowbirds and Sunseekers Travelling from Montreal & Toronto to U.S. Sun Destinations
Saturday October 16, 11:16 am ET


MONTREAL, Oct. 16 /CNW Telbec/ - Following the success of the airline's multi-trip Latitude Passes and Fly City passes, Air Canada today introduced the Sun Pass, offering multi-trip passes of six one-way Flight Credits for flights from Montreal or Toronto to popular U.S. sun destinations including Florida and Las Vegas.
The new multi-trip Sun Pass offers frequent travellers the convenience of online booking simplicity, along with average savings of 15 per cent off the carrier's popular Fun fares, along with no advance purchase, no minimum stays and Aeroplan mileage accumulation.

"We expect that the Sun Pass will receive a very warm welcome from customers," said Montie Brewer, Executive Vice President, Commercial. "Sun Passes are the natural next step in Air Canada's growing selection of multi passes. Like Latitude and Fly City passes, they are designed with the frequent customer in mind, offering total planning flexibility, online simplicity, great savings and a choice of our most popular U.S. sun destinations."

The Sun Pass offers customers peace of mind and predictable prices with locked-in, value-priced fares good for six one way trips. The multi-pass also reduces the hassle and time spent buying individual tickets and allows customers to change their mind - and their sun destination - for a $30 fee.

"Air Canada is leading the way in offering more value and more flexibility and Sun Pass multi-passes are just one excellent example of this strategy in action," said Brewer. "We intend to build on this in the future by offering even more specialized products and services that put control back into the hands of our customers through online convenience at aircanada.com."

Discount Multi-trip Pass with Online Convenience

------------------------------------------------

Designed specially for frequent travellers seeking exceptional value and flexibility, Air Canada's new Sun Passes are available exclusively online at aircanada.com for six flight credits, each credit valid for a one way non-stop or same direct flight number flight from Toronto or Montreal to select U.S. sun destinations. Sun Passes may be purchased anytime with no advance purchase and no minimum stays.

To purchase a Sun Pass, customers visit the aircanada.com site, click on 'Flight Wallet' on the home page and enter their Aeroplan membership number and personal identification number. Convenient online access through the customer's personalized Flight Wallet at aircanada.com provides an easy and quick way to book travel, make changes and access account information on remaining travel credits. Fly City Passes are currently available exclusively to residents of Canada and are valid for travel 353 days from date of purchase and are non-refundable and non-transferable. Other conditions include fee for changes to initial Flight Credit reservation and use of Aeroplan Special System wide upgrade certificates. Flight credit cancellation and re-crediting are also subject to a fee.

Aeroplan Mileage

----------------

Like Air Canada's Fun fare product, the carrier's Sun Passes offer customers 100 per cent Aeroplan Status Mile accumulation for every mile flown in addition to a purchase incentive of one Aeroplan Mile for every $3 spent.


          §    Choice of Two Sun Passes
          §    ------------------------
          §    Sun Toronto to/from: Fort Lauderdale, Orlando, Miami, Tampa, Fort
          §    Myers(x), West Palm Beach(x), Phoenix, Las Vegas. six credits: $1,554
          §    (plus GST)

          §    Sun Montreal to/from: Fort Lauderdale, Orlando(x), Miami, Tampa(x), Fort
          §    Myers(x), West Palm Beach(x), Las Vegas. six credits: $1,554 (plus GST)

          §    (x)seasonal routes


Air Canada's new Sun Pass joins a growing range of specialized multi-trip pass products such as: Fly City Pass, a series of eight discount air pass products for frequent fliers on popular domestic Canada and U.S. transborder routes, from coast to coast; Latitude Pass for Rapidair customers between Toronto, Montreal and Ottawa, and Latitude Pass for the West now available for travel on 17 routes throughout western Canada. Air Canada's new online products represent a further step in Air Canada's comprehensive strategy to provide optimum value and simplicity and to put more control in customers' hands through automation.






Five simple fares for flying Air Canada: Airline leads the way to next level of convenience with elimination of "Saturday Stay, Round Trip" rules
Sunday October 17, 10:00 am ET


MONTREAL, Oct. 17 /CNW Telbec/ - Air Canada today announced that it is taking another big step toward further simplifying its fare structure and increasing customer convenience by eliminating its Econo fare category effective immediately -- along with minimum stay and round trip requirements for fares on all continental North America flights.
By eliminating the Econo fare type, the airline is moving from six fare categories to just five simple fare types - Tango, Fun, Latitude, Freedom and Executive Class - one-way fares that permanently offer best all-round value, and all without the hassle of minimum stay and round trip rules.

"Enforced Saturday stay-overs and return fares are the bane of air travelers and the last vestiges of old-style airline pricing. We're delighted to get rid of them and stop telling customers where to spend their weekends," said Montie Brewer, Executive Vice President, Commercial. "Now there's no minimum stay required and no need to fly round-trip to get Air Canada's best fares in continental North America. By removing these rules, we've reached another milestone in giving customers simple, flexible and easy-to-use fares. This builds on our simplified fare structure and demonstrates Air Canada's commitment to innovation and customer choice."

Customers are choosing Air Canada's simplified fares in increasing numbers due to instant access to the lowest available fares and the ability to select one of five simple and distinct fare types. Air Canada's ultra-clear web display distinguishes itself from that of most carriers by showing all travel options on one screen and allowing customers to easily compare price, benefits, flexibility and attributes. Moreover, Air Canada customers can make complete or partial changes to most reservations directly online. In addition to the Aeroplan Miles earned on eligible fares, every flight booked at aircanada.com earns one additional Aeroplan Mile for every $3 spent on all domestic Canada and transborder U.S. travel.

Air Canada now offers five different types of fares for five different types of airline trips from ultra-low priced, fixed-schedule travel with Tango fares to full-featured, flexible business travel with Executive Class fares. Each fare category is priced according to its built-in benefits (flexibility, refundability, level of Aeroplan mileage accumulation, lounge access etc.) giving Air Canada customers the unique ability to select the specific fare category and benefits they need for the type of journey they're planning.


          §    Tango     Great all-around value and lowest one way fares:

          §              - Available online at aircanada.com
          §              - No minimum stay
          §              - Advance purchase may apply
          §              - Unlimited changes on eligible routes for a minimal fee ($30)
          §                plus any fare difference
          §              - Non-refundable
          §              - Customers receive 50% non-status Aeroplan Miles
          §              - Paid advance seat selection
          §              - No airport same day change and standby

          §    Fun       Best value - highly competitive, deeply discounted one way
          §              fares with airport same day changes:

          §              - No minimum stay
          §              - Complimentary advance seat assignment
          §              - Advance purchase may apply
          §              - Unlimited changes prior to day of departure on eligible
          §                routes for a minimal fee ($25), plus any fare difference
          §              - Day of departure changes ($50 & no charge for fare
          §                difference)
          §                for same day flights only.
          §              - Non-refundable
          §              - Customers receive Aeroplan Status Miles (50% for travel
          §                within Canada; 100% for U.S. transborder travel)

          §    Latitude  Fully flexible, significantly discounted one way fares:
          §              - Purchase anytime
          §              - Unlimited changes at no cost
          §              - Fully refundable
          §              - Same day standby at the airport
          §              - Complimentary advance seat assignment
          §              - Customers receive 100% Aeroplan Status Miles

          §    Freedom   Maximum flexibility and convenience; one way fares with full
          §              and immediate access, no constraints:

          §              - Confirmed upgrade up to 24 hours
          §              - Purchase anytime
          §              - Same day standby at airport
          §              - Unlimited changes at no cost
          §              - Fully refundable
          §              - Complimentary advance seat assignment
          §              - Priority check-in, boarding and baggage handling at Canadian
          §                airports
          §              - Access to Maple Leaf Lounges at Canadian airports
          §              - Customers receive 125% Aeroplan Status Miles




          §    Executive All the advantages of Air Canada Executive Class with
          §    Class     substantial savings:

          §              - Full flexibility with no restrictions
          §              - Priority check-in, boarding and baggage handling
          §              - Complimentary advance seat assignment
          §              - Maple Leaf Lounge access
          §              - Executive Class cabin seating
          §              - Complimentary alcoholic beverage and premium meal/snack
          §                service
          §              - Customers receive up to 150% Aeroplan Status Miles

"Air Canada's future success will be driven by the loyalty of our customers. The initiatives announced today signal a renewed focus on providing our customers with value-driven products and services that place Air Canada on the forefront of international carriers. A new look for our aircraft, inside and out, new uniforms for front-line staff and a modernized brand image convey the re-energized Air Canada to our customers and the world. It means an airline that is recognized for excellence world wide and whose employees are driven by the passion to succeed - not unlike the qualities for which Celine Dion, is known the world over.

Continued Mr. Milton, "All of us at Air Canada are honored to have this great Canadian icon with us today as we present the new Air Canada to the world."

"This is such an exciting time for Air Canada. It is truly a privilege to share this moment with you," said Celine Dion, wearing the stylish new Air Canada uniform as she addressed the carrier's employees. "It's been great working together with you on my latest music video and an honour to perform the song, 'You and I...were meant to fly,' to promote Air Canada and this great country around the world. Like you, I give it my best, day in and day out, to transport people and help them to realize their dreams, all over the world. We are all ambassadors for Canada, and from what I can see today, you and I were meant to fly." Joining Celine Dion onstage at each event was a chorus of Air Canada employees chosen through nation wide auditions to accompany the international superstar perform her May release "You and I...were meant to fly." The song is featured in the carrier's new television and radio advertising campaign that introduces the newly transformed Air Canada to the Canadian public. The campaign, created by Air Canada's advertising agency of record, Montreal-based Marketel, begins October 21, 2004.

Air Canada also announced today that it will launch a cooperative advertising campaign with the Canadian Tourism Commission to jointly promote Canada as a travel destination in markets outside the country. Major print and broadcast advertising campaigns are slated to begin in select markets in the United States and Great Britain in early 2005. By sharing costs and leveraging their respective strengths, Canada's flag carrier together with Canada's national tourism promoter will generate greater impact in international markets for the benefit of Canada's tourism and hospitality industries.

A new look for the fleet: Inside and out

Air Canada unveiled its new livery design with a display of a Boeing 767 aircraft sporting an updated design and colour scheme. Following their first stop over this morning in Toronto for employees to see the new contemporary look, the aircraft continued on to an event for employees at the carrier's headquarters in Montreal before continuing on to events in Calgary and Vancouver.

Air Canada's new updated livery, designed by FutureBrand Worldwide, features fresh clean lines and lighter colours; a more modern look with added energy that reflects Air Canada's approach to streamlining customer service and developing innovative products through simplification.

The distinctive Air Canada Maple Leaf in red on the tail of its aircraft will now be complemented by a graphic dot pattern representation called the "Frosted Leaf" in a light shade of green. In addition to its use on the exterior of the aircraft, the new colour scheme will be used throughout the interiors of aircraft and eventually across all corporate identity applications.

New uniforms for front line staff convey contemporary sophistication

Created by Canadian fashion designer, Debbie Shuchat, the new uniforms for Air Canada's 6,700 flight attendants and 2,900 airport customer service agents embody classic sophistication with contemporary flair. Inspired by a retro couture look, Shuchat has modernized the designs with softer, contoured lines in a style that is clean, fluid and simple.

Men's and women's suits will be in Midnight Blue with Silver Sky lining. Shirts and sweaters will also be in Silver Sky, accessorized with ties and scarves recalling the new livery's Frosted Leaf graphic design with a subtle tone-on-tone iridescence. Wear testing by employees will be conducted in the first half of 2005, followed by production of the final designs that will have incorporated feedback from employee groups. It is expected that Air Canada's front line employees will begin wearing the new uniforms in late 2005.

New leading edge in-flight enhancements

Air Canada today unveiled a new in-flight entertainment (IFE) system that will bring all of its customers leading edge video and audio on demand with a choice of up to 80 hours of programming on personal television screens at each seat. Air Canada will thus become the first airline in the Americas to offer fully interactive, personalized entertainment choices to all customers on all of its aircraft.

The system will consist of touch screen capability that gives each customer complete fully interactive programming control for making personalized entertainment choices and features digital image and surround sound quality. Introduction of the new system is scheduled to begin with the arrival of new Bombardier CRJ 705 aircraft in May 2005, and installation on the airline's international fleet beginning September 2005. The selection of the manufacturer will be announced upon finalization of the contract.

Air Canada also confirmed today that it will proceed with the introduction of the newest generation of premium lie flat seating for all of its Executive First international customers in order to ensure that its Executive First customers experience the very best in comfort available. Air Canada expects to introduce luxury lie flat seating across its international fleet beginning as early as September 2005. The selection of the manufacturer will be announced upon finalization of the contract.

"Just as we have invested in the renewal of our North American fleet with new, smaller jet aircraft, we must continue to invest strategically in other areas including in-flight products to remain competitive in domestic and international markets," concluded Mr. Milton. "We must invest to earn the ongoing loyalty of our customers. As we have seen today, Air Canada and its people will be better equipped than ever to meet new challenges head on and succeed."

The wide ranging initiatives announced today will be implemented strategically and economically to minimize costs. Painting of the livery will be accomplished as part of the carrier's regularly scheduled maintenance program over a two year period. The transition will be accelerated as a result of the upcoming delivery of new Embraer aircraft beginning in 2005. To achieve consistency fleet wide in a timely and economical manner, a transitional livery decal will be applied to aircraft tails. The carrier's new advertising campaign is also being produced within the parameters of existing marketing budgets. The introduction of the new uniform for front line staff, last redesigned in 1995, will be undertaken with both cost and the comfort of employees top of mind.


          §    Note to Photo Editors: High resolution, downloadable color photos of the
          §    event, participants and new livery will be made available at
          §    www.aircanada.ca/about-us/media/facts/logo.html under "Facts and
          §    Photos".

          §    Note to Editors: Fact sheets on the following topics are available online
          §    at www.aircanada.ca/about-us/media/facts/products/index.html

          §    - In-Flight Enhancements Place Air Canada at the Leading Edge
          §    - A New Contemporary Look For Air Canada's Fleet
          §    - New Uniforms For Air Canada Front Line Staff Convey Contemporary
          §      Sophistication
          §    - Air Canada Employees Perform with Celine Dion
          §    - Celine Dion Performs the Song "You And I...Were Meant To Fly": Theme of
          §      Air Canada's New Advertising Campaign

BANGKOK (Dow Jones-VWD)--Das Luftfahrtbündnis Star Alliance rechnet für ihr Firmenkundenprogramm "Corporate Plus" in diesem Jahr mit einem Umsatzanstieg von über 25% auf über 1,5 Mrd EUR. Wie die Organisation, in der die Deutsche Lufthansa AG vertreten ist, am Montag mitteilte, wurden von den Mitglieds-Airlines bislang 35 globale Firmenkundenverträge im Volumen von 1,5 Mrd EUR unterzeichnet. Im Rahmen des Programms können Unternehmen eine beliebige Star-Airline kontaktieren und dabei das Streckennetz und den Service aller in der Organisation vertretenen Fluggesellschaften nutzen.

In der Star Alliance sind neben der Lufthansa unter anderem Air Canada, Scandinavian Airlines, Singapore Airlines, United, US Airways und VARIG vertreten. Die Mitglieder bieten täglich über 14.000 Flüge zu 772 Zielorten in 133 Ländern an.

--------------------------------------------------

UPDATE 1-Judge adds WestJet chief to Air Canada lawsuit
Thu Dec 23, 2004 03:49 PM ET
(Adds details, background, stock prices)

MONTREAL, Dec 23 (Reuters) - An Ontario court judge has added the chief executive of WestJet Airlines Ltd. (WJA.TO: Quote, Profile, Research) as a defendant in Air Canada's (ACErv.TO: Quote, Profile, Research) C$220 million ($179 million) corporate espionage lawsuit against the no-frills carrier.

In a statement on Thursday, Air Canada said an Ontario Superior Court judge had issued an order adding Clive Beddoe, who is also chairman, president and co-founder of WestJet, and four other WestJet executives to the lawsuit.

WestJet did not oppose the motion, Air Canada said.

The court development is the latest in an increasingly bitter and personal dispute between the rival airlines and their leaders over allegations that senior WestJet managers gained access to private Air Canada data through an employee Web site nearly a quarter of a million times over almost a year.

According to Air Canada's claim, which has not been proven in court, Calgary-based WestJet used the data to adjust commercial strategies such as flight schedules to better compete against the Montreal carrier.

In early November, Air Canada, the country's dominant airline and world No. 13, sought to add Beddoe to the lawsuit, a move the WestJet chief said at the time was a "pretty low blow" and attempt to personalize the dispute.

Just last week, WestJet launched its own C$30 million lawsuit against Air Canada, saying the bigger airline was abusing the court process as part of a campaign to destroy the discount carrier.

WestJet's lawsuit named Robert Milton, chairman, president and chief executive of ACE Aviation Holdings Inc., Air Canada's parent, and other executives at the airline.

ACE Aviation shares were down 19 Canadian cents at C$35.80 on the Toronto Stock Exchange on Thursday afternoon, while WestJet shares were up 35 Canadian cents at C$12.15.

The dispute and weaker operating results have weighed on WestJet stock, which has dropped about 11 percent over the past three months.

ACE Aviation shares have advanced about 80 percent from their C$20 issue price when Air Canada emerged from 18 months of court protection from creditors at the end of September.

--------------------------------------------------

Air Canada airlifts relief supplies to Indonesia; Launches in-flight donations program for tsunami victims
Thursday December 30, 6:00 pm ET

  Editors:§    MONTREAL, Dec. 30 /CNW Telbec/ - In response to the unprecedented
devastation brought by tsunamis in Southeast Asia, Air Canada is working
around the clock with Canadian aid agencies and airline industry partners to
support relief efforts in the region as quickly as possible.
          §    Air Canada will provide dedicated relief flights to Sumatra, Indonesia
carrying supplies collected by World Vision Canada and the airline's caterer,
Cara Foods. Plans are under way for two relief flights loaded with up to a
total of 130 tonnes of cargo to depart Canada the first week of January 2005.
Air Canada will continue to work closely with aid agencies to arrange for
further shipments of supplies into the region as required.
          §    Included in these initial shipments to be distributed locally by World
Vision will be pharmaceuticals, general medical supplies, water purification
equipment, non-perishable foods, clothing and shelter materials.
          §    "On behalf of Air Canada and its more than 30,000 employees worldwide, I
want to express our sadness and extend our condolences to those affected by
this terrible catastrophe," said Robert Milton, Chairman, President and CEO of
ACE Aviation Holdings. "Air Canada will do its part in the international
relief effort to assist individuals and companies to get their support to
those in greatest need, as quickly as possible. Hopefully, with contributions
such as these provided by charities, industry partners, employee volunteers
and our customers, together we can help rebuild some of the losses felt by
those less fortunate in Southeast Asia. We look to suppliers and other
Canadian corporations to participate in this important initiative."
          §    In addition, Air Canada today announced a partnership with the Canadian
Red Cross to help raise funds to assist people affected by the December 26
tsunamis in Southeast Asia. Beginning as early as Saturday January 1, 2005,
Air Canada flight attendants will distribute and collect Red Cross donation
envelopes on flights across its entire network.
          §    "This program provides one more opportunity for Air Canada customers -
Canadians and travellers from around the world - to show their support and
solidarity for the vital activities that Red Cross is undertaking at this time
of crisis," continued Mr. Milton.
          §    Air Canada has also implemented a flexible booking policy to assist its
customers who wish to make changes to their travel plans to and from the
regions affected.
          §    Air Canada customers with confirmed tickets purchased on or before
December 26, 2004 for travel on or before January 31, 2005 to, from or through
Colombo, Sri Lanka; Indonesia; Penang and Langkawi, Malaysia; Madras, India;
The Maldives; and Thailand may make changes prior to their original travel
date without penalty.
          §    These flexible booking conditions apply to flights operated by Air Canada
and Air Canada codeshare flights, indicated with the AC flight code. As Air
Canada does not operate its own flights into the region, it reminds customers
that changes to bookings for flights to and from affected areas that are not
operated by Air Canada and are not codeshare flights, are subject to the
policies of the operating carrier.

          §    For assistance with changing travel plans, customers are advised to
contact their travel agent or Air Canada Reservations. Air Canada staff will
endeavour to accommodate customers on the earliest available flight if they
wish to leave an affected area.