Parliament of Canada passed Bill C-26 which
received Royal Assent on June 29, 2000. Bill C-26 amended the Canada
Transportation Act and the Air Canada Public Participation Act. The amendments
to the Air Canada Public Participation Act provide inter alia for an increase
to the maximum individual ownership limit from 10% to 15%.

For purposes of reflecting the amendments to the Air Canada Public
Participation Act, amendments to Air Canada`s Articles of Amalgamation were
submitted at the annual and special meeting of shareholders held on May 15,
2001. Until such approval of the amendments by the shareholders of Air Canada,
the maximum individual ownership constraint was limited at 10%.

Following the approval by the shareholders of the amendments to the
Articles of Amalgamation, the maximum individual ownership threshold with
respect to the voting shares of Air Canada is now at 15%.

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