Air Canada has been in discussions with the
Competition Bureau over the past months on a number of issues on pricing in
the new competitive environment.

Following these discussions, Air Canada will withdraw its discounted one
way unrestricted economy LAC fare effective February 24 on the following three
routes: Halifax- Montreal, Halifax-Ottawa and Halifax - St John`s, Nfld.
pending further clarification of the rules in the new competitive environment.
All other competitive fares currently offered by Air Canada will continue to
apply.

Air Canada will provide comment at a later date on the Draft Enforcement
Guidelines On Abuse of Dominance in the Airline Industry issued by the
Commissioner of Competition on February 8, particularly as it relates to the
avoidable cost test.

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