Air Canada Secures USD$60 Million Heavy Maintenance Agreement

Air Canada today announced that it has secured
a five-year, USD$60 million agreement for the comprehensive maintenance and
repair of Atlantic Coast Airlines` fleet of Canadair Regional Jets. The
contract came into effect February 22, 2002. This agreement comes six months
after Atlantic Coast Airlines awarded a 16-year USD$285 million contract to
Air Canada Technical Services for the maintenance and repair of components for
their Canadair Regional Jet fleet.

Maintenance work will be performed at Air Canada`s Dorval Maintenance
Center located at the airline`s headquarters in Montreal. Atlantic Coast
Airlines` CRJ fleet is expected to grow to at least 96 aircraft by the end of

“This nose-to-tail heavy maintenance agreement with Atlantic Coast
Airlines is consistent with our business strategy to become a full service
leader in maintenance repair and overhaul (MRO) for large fleet operators in
North America,” said Robin Wohnsigl, President, Air Canada Technical Services.
“The additional heavy maintenance program brings us one step closer to
demonstrating the benefits of the one-stop shop concept for servicing large
regional jet fleets.”

Air Canada Technical Services is responsible for the maintenance,
engineering, repair, supply and purchasing to support Air Canada`s mainline
fleet of more than 220 aircraft, as well as third party technical services, in
five maintenance categories: airframes, engines, components, line and aircraft
cabins. Air Canada Technical Services employs approximately 8000 staff in
Canada, the U.S. and Europe, with four major maintenance base centers located
in Montreal, Toronto, Winnipeg and Vancouver.

Atlantic Coast Airlines serves 64 destinations in the United States and
Canada with over 760 daily flights. The airline operates in conjunction with
United Airlines as a United Express carrier out of Washington Dulles and
Chicago O`Hare, and with Delta Air Lines as a Delta Connection partner with
flights from New York LaGuardia, Boston and Cincinnati. In addition to the CRJ
fleet, the company also operates a number of Fairchild Dornier 328JETs as well
as Jetstream-41 turboprop aircraft.