Air Canada Comments on Competition Bureau Decision to Adjourn Hearing

Air Canada today provided comment on the
Competition Tribunal`s decision to grant Air Canada`s motion to adjourn until
next spring the hearing on pricing behaviour in the Canadian airline industry.
“This adjournment quite properly will allow all parties the benefit of
time to evaluate the impact of the events of September 11,” said John M.
Baker, Senior Vice President and General Counsel for Air Canada. “It will
provide time to assess how those events will shape the new marketplace and
particularly competition in the Canadian domestic market.
“At today`s hearing, Westjet attempted to oppose Air Canada`s request for
an adjournment and to seek terms that would have imposed unacceptable
constraints on Air Canada`s ability to compete during this particularly
critical time for the industry. Westjet has recently said that it will use the
Competition Tribunal as `one of the tools in our arsenal of weapons in a
competitive industry.` The Tribunal did not agree to entertain Westjet`s
submissions objecting to the adjournment.

“What is at stake for Air Canada is the ability to compete in the new
marketplace and respond to changing consumer demands for lower fares,”
concluded Mr. Baker.