Air Canada - Notice Announcing the Results of the Exchange Offering

Air Canada Offer to Exchange US$300,000,000 10.25% Senior Notes and Euro 100,000,000 10.25% Senior Notes Due March 15, 2011

MONTREAL, June 25 /CNW/ - Air Canada (the “Company”) announced that its
offer to exchange up to US$300,000,000 aggregate principal amount of its
registered 10.25% Senior Notes due March 15, 2011 (the “Dollar Notes”) and
Euro 100,000,000 aggregate principal amount of its registered 10.25% Senior
Notes due March 15, 2011 (the “Euro Notes”, and together with the Dollar
Notes, “Exchange Notes”) for any and all outstanding unregistered
US$300,000,000 aggregate principal amount of 10.25% Senior Notes due March 15,
2011 and Euro 100,000,000 aggregate principal amount of 10.25% Senior Notes
due March 15, 2011 (“Original Notes”) has expired at 5:00 p.m. New York City
time on June 22, 2001, in connection with the Dollar Notes and at 5:00 p.m.
London time on June 22, 2001, in connection with the Euro Notes.  As of close
of business in New York City and London on June 22, 2001, the Company was
advised by the Dollar and Euro exchange agents for the exchange offer that an
aggregate of US$299,417,000 and Euro 99,169,000 of Original Notes,
respectively, had been tendered in exchange for an equivalent amount of
Exchange Notes.

Application has been made to list the Exchange Notes on the Luxembourg
Stock Exchange as from June 25, 2001.

The exchange will be consummated on June 25, 2001.

——-

ADVERTISEMENT