In response to rapidly growing customer demand
for its low fare Tango service, Air Canada is pleased to announce today the
addition of three new destinations to its Tango network. Effective April 1,
daily Tango service will commence between Regina/Saskatoon-Toronto and Thunder
Bay-Toronto, with tickets available for sale immediately. Until January 24,
special one way introductory fares are available including Regina/Saskatoon-
Toronto for as low as $169 and Thunder Bay-Toronto for as low as $89. All
Tango fares are available with no minimum stay and no advance purchase
requirement.

Following the recent network addition of St. John`s on January 7, and
with the addition of these three new destinations, the Tango network expands
to include twelve major Canadian cities from coast to coast.

MORE SUMMER SERVICE AND MORE AIRCRAFT

In addition, effective June 17, Tango`s existing service on high demand
routes will be expanded to accommodate increased traffic during the busy
summer travel season. Tango`s Toronto-Vancouver service will increase from two
to three daily non-stop flights, Toronto-Winnipeg service will increase from
one to two daily non-stop flights and Toronto-Halifax service will increase
from one non-stop and two one-stop flights daily to four daily flights
including two non-stop services. For summer 2002, Tango will offer over 290
departures per week, with a fleet of nine aircraft including six Airbus 320
aircraft currently in operation.

“With just over two months of operations now behind us, Tango continues
to grow as a popular consumer choice for highly affordable, reliable air
service coupled with Air Canada`s reputation for the highest operational
standards,” said Robert Milton, President and Chief Executive Officer, Air
Canada. “With the addition of Regina, Saskatoon and Thunder Bay, and
additional summer service on select existing routes, we continue to expand Air
Canada`s participation in the rapidly growing market for low fare, no frills
service.”

Recent survey results indicate strong support among Canadians for Air
Canada`s provision of a low fare carrier. A nationwide telephone survey of 500
Canadians conducted by Ipsos-Reid between November 30 and December 6, 2001
found that 82 per cent of Canadians would fly a low fare, no frills airline
operated by Air Canada. Further survey results are available at
www.aircanada.ca under “Latest News”.

RECORD WEB BOOKINGS
Tango customers continue to respond in record numbers to the ease of
booking Tango flights at www.flytango.com. Over 80 per cent of Tango flights
are booked on its dedicated website - a cost saving element that contributes
to Air Canada`s ability to operate Tango at a lower cost and therefore offer
low fares.

ABOUT TANGO
Tango by Air Canada, a separately branded service of Air Canada,
commenced operations November 1, 2001. Tango now offers service through its
Toronto hub to Vancouver, Edmonton, Calgary, Regina, Saskatoon, Thunder Bay,
Winnipeg, Ottawa, Montreal, Halifax and St. John`s.

Tango offers consumers a no frills air travel alternative complementing
Air Canada`s full service operations. Tango operates a fleet of distinctly
branded aircraft, offering a unique “all extras are optional” in-flight
service, including a menu selection of snacks and refreshments at reasonable
prices and short feature audiovisual entertainment. The aircraft cabin offers
an all-economy seating configuration matching Air Canada`s industry-leading
levels of in-flight comfort.

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