Air Canada (AC.TO, ACNAF) and its Star
Alliance(TM) partners today launched a European air travel pass available year-
round at attractive prices. Now on sale for travel effective immediately, the
Star Alliance European Airpass offers the economy-class services of
14 airlines to more than 200 destinations in 43 European countries, with no
minimum stay and only two stopovers required.

All the European Star Alliance member airlines are participating in the
program, as well as a number of their regional partners. Travel to and from
Europe also has to be on a Star Alliance carrier, such as Air Canada.

“The Star Alliance European Airpass offers an excellent opportunity for
visitors from other parts of the world to travel within Europe, including
Commonwealth of Independent State (CIS) countries, at fares that won`t break
their budgets,” said Richard S. Merkatz, the Star Alliance`s newly appointed
Vice President of Sales.

The number of flight coupons making up an Airpass is between 3 and 10 and
the fare per coupon is related to distance. For example, the fare will be
US$60 (approximately CAD $91)(1) for distances up to 150 miles, US$90
(approximately CAD $137) for 151-500 miles and US$115 (approximately CAD $175)
for 501-1,000 miles (excluding local taxes, fees and charges.) At the other
end of the scale the fare is US$220 (approximately CAD $334) for distances
between 2,251 and 2,500 miles. Children aged between 2 and 11 pay 67 percent
of the adult fare, while infants pay 10 percent.

Using these examples, an adult travelling in economy class on
participating airlines from Paris to Vienna and on to Munich, Copenhagen and
London before returning to Paris will pay a total fare of US$525
(approximately CAD $797) excluding applicable taxes and charges. The holder of
a Star Alliance European Airpass does not have to hurry to complete his
travel, as the maximum stay is 3 months. There are no seasonal limitations and
the airpass can be purchased all year round. It can also be used in
conjunction with a Star Alliance Round-the-World economy-class ticket.

The European airlines participating in the program are the Star Alliance
members Lufthansa German Airlines, SAS Scandinavian Airlines, Austrian
Airlines (including Lauda Air and Tyrolean Airways) and British Midland, as
well as Air Botnia, Air Baltic, Maersk Air, Spanair, Cimber Air, Falcon Air,
Estonian Air and Wideroe.

Star Alliance is a partnership of independent airlines established in
1997 to provide seamless travel worldwide. The combined Star Alliance network
covers more than 815 destinations in over 130 countries and is being served by
more than 9,500 daily flights. The Star Alliance members also include Air
Canada, Air New Zealand, All Nippon Airways - ANA, Ansett Australia, Mexicana
Airlines, Singapore Airlines, Thai Airways International, United Airlines and
VARIG Brazilian Airlines.

(1)  Based on current exchange rate of CAD$1.52 per USD$1.00

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