Air Canada Completes Financing Transactions for Aircraft valued at CAD $540 Million; Obtains CAD $17

Air Canada today announced the completion of
CAD $540 million of aircraft-related financing, providing for approximately
CAD $170 million of new funding.

Transactions totaling over CAD $305 million were completed with aircraft
lessors for the sale and leaseback of five owned Airbus A320 aircraft and the
delivery under lease of a new Boeing B767-300 aircraft.
Additionally, a lease structure has been completed involving a syndicate
of European banks to lease the first three Airbus A321 aircraft deliveries to
Air Canada in November, 2001.

“These transactions demonstrate the continuing support of and confidence
in Air Canada by lessors and lenders in these uncertain times”, said Rob
Peterson, Executive Vice President and Chief Financial Officer.

As of today, including the transactions outlined above, Air Canada`s
available cash and credit is in excess of CAD $1 billion.

The company continues to monitor its liquidity requirements in light of
its current and anticipated needs and remains confident, at the present time,
that these will be addressed with current and future liquidity enhancing
activities.

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These activities could include additional sale/leaseback transactions,
further cost reduction initiatives, capacity reductions, asset sales and
negotiated revised arrangements with suppliers.
In addition, subject to required approvals, the company may from time to
time, purchase its debt on the open market.

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