Air Canada Reaches Major Integration Milestone With Granting Of Single Operating Certificate

Air Canada is pleased to announce that on
March 29, 2001, Transport Canada granted an amended single Air Operator
Certificate (AOC), allowing for the complete consolidation of Canadian
Airlines operations, maintenance, aircraft and routes under the Air Canada
operating certificate and company name.

The regulatory approval from Transport Canada means that the timetable
for complete integration of day-to-day operations has been accepted and that
management control, including the operation of aircraft in all fleet types,
now formally resides within the Air Canada organization.

“This regulatory approval marks the last major milestone in the
integration process,” said Captain Rob Giguere, Executive Vice President,
Operations. “Following the migration of certain Canadian Airlines operational
and technical systems to those of Air Canada and the resolution of remaining
labour issues, full integration will be achieved,” he said.

Since acquiring Canadian Airlines last year, Air Canada is now Canada`s
largest domestic and international full service airline, the seventh largest
North American airline and the twelfth largest airline in the world. Air
Canada, with its regional airline subsidiary, serves 150 direct destinations
with a fleet of 375 aircraft, carries 30 million passengers annually and
employs 45,000 employees.