Air Canada Customer Service Workforce Integration Agreement Ratified

Air Canada today commended the Canadian Auto
Workers (CAW) leadership and its customer sales and service workforce for its
ratification of a milestone labour agreement providing for the workforce
integration of the 8,800 customer service agents at Air Canada and Canadian
Airlines. The CAW announced earlier today that 79 per cent of the votes cast
were in favour of the agreement.

``I commend the CAW leadership and our customer sales and service
workforce for their support of the integration of the two airlines` operations
with this critical workforce integration agreement,`` said Robert Milton,
President and Chief Executive Officer of Air Canada. ``The agreement, which
allows employees at Air Canada and Canadian Airlines to serve each others
customers at call centres and airports reflects our employees` commitment to
provide the highest level of service possible to our customers.

``The agreement`s extension of the existing contract to 2004 further
supports the company`s objective of long term labor stability which will allow
us to proceed with Air Canada`s growth as a major global carrier to the
benefit of all our stakeholders,`` concluded Mr. Milton.