Air Canada Reaches Tentative Agreement with Pilots on Workshare Program to Obtain Significant Cost R

Air Canada today announced that it had reached a
tentative agreement with the Air Canada Pilots` Association (ACPA) on
workplace programs that eliminate the need to proceed with previously
announced pilot furloughs. The programs include mandatory worksharing,
voluntary block time reductions and a special retirement incentive severance
plan. In addition to mitigating all 170 planned furloughs among the pilot
group, the programs are expected to result in significant savings to meet the
airline`s objective of reducing labor costs immediately.
“We are pleased that this agreement, once ratified, will avoid furloughs
which are always a last resort,” said Rob Giguere, Executive Vice President,
Operations. “While we still have work to do to further reduce costs and
improve efficiencies, this agreement together with other workplace programs
involving flight attendants, customer sales and service agents, machinists and
finance agents, does represent another positive step in achieving the required
labour cost savings for the company.”

The agreement, subject to ratification by the union membership, comes
into effect January 1, 2002 for a one-year period and may be extended a
further six months. The Air Canada Pilots` Association represents the
airline`s 3225 pilots.