Air Canada today announced that it is launching
a new jet charter business, `AC Jetz,` to meet the special travel needs of
sports teams and corporate clients. The airline will re-assign existing
surplus capacity using up to four aircraft from its Boeing 737 fleet and
assign existing employees to operate the new revenue generating initiative.
The airline already has in place agreements with a number of sports teams for
the premium jet charter service.

“Our specialized jet charter business will allow Air Canada to re-assign
surplus capacity in a cost effective manner while generating new revenues in a
profitable market segment,” said Bill Bredt, Vice President, New Businesses.
“Consistent with our low fare initiative, Tango by Air Canada, we are pursuing
new business opportunities at little or no incremental cost. Moreover, AC Jetz
will permit Air Canada to mitigate some job losses in its current job
reduction program. We are confident our new jet charter operation will be of
particular interest to corporate and group incentive clients as well as to
sports teams seeking a premium jet charter product offering personalized
service.”

Air Canada plans on initially reconfiguring three and subsequently up to
four of its Boeing 737 aircraft to offer extra-spacious legroom and the
comfort of all-business class seating of 32 seats with up to 55 inch pitch and
16 seats with 41 inch pitch. The airline`s Boeing 737s are currently
configured with 12 business seats and 88 economy seats with 39 and 33 inch
pitch, respectively. Air Canada will assign dedicated flight crews - a
particularly attractive feature to sports teams travelling to and from games.
In addition, boarding will take place away from the public terminal area and
parking will be provided close by for added convenience.

Announcements providing further information on AC Jetz sports team
clients will be made at a later date.
——-