Air Canada Renews Agreement with Canada Post

Air Canada and Canada Post Corporation have
renewed their long standing cargo and passenger services contract. The multi-
million dollar contract that includes carriage of mail and corporate passenger
travel has been extended for a further five years for domestic service, three
years for transborder and international service and two years for corporate
travel. As the carrier for Canada Post`s regular and Premium service mail, Air
Canada will carry over 35 million kilograms of mail annually utilizing over
200 daily flights.

“Air Canada and Canada Post have, over the years, become global players
in our respective industries,” said Tom Charlton, Senior Vice President,
Operations. “This contract renewal ensures Canada Post will maintain its
reliability and consistency of service that dates back sixty-five years to Air
Canada`s origins and the commencement of this partnership.”

“This agreement will continue to leverage the two global networks of our
two companies, including service to Canada`s most remote communities and
destinations around the globe,” said Claude Morin, Vice President Cargo, Air
Canada. “We look forward to working together with Canada Post to maximize
advancements in information technology in both the postal and airline
industries to provide enhanced customer service.”

Canada Post serves over 30 million Canadians at some 13 million addresses
and nearly 1 million Canadian businesses. Incorporated in 1981, the company
employs more than 56,000 people and offers customers 7,000 postal outlets and
the largest retail network in Canada. In 2000/2001, its revenues were CAD
$5.9B. The address of Canada Post`s Web site is

Air Canada provides scheduled and charter service directly to 17 Canadian
cities, 38 destinations in the United States and 49 cities in Europe, the
Middle East, Asia, Australia the Caribbean, Mexico and South America,
operating on average 700 scheduled flights each day. This extensive global
network is enhanced through Air Canada`s membership in the Star Alliance
network with 11 international airline partners, who, with Air Canada, serve
894 airports in 129 countries around the world.