Air Canada announced today that it has reached
a tentative agreement with the Canadian Auto Workers (CAW) that provides for
the workforce integration of the 8,800 customer service agents at Air Canada
and Canadian Airlines.

``This agreement is a strong indicator of labour`s support for the
accelerated integration of the two airlines` operations. The four-year term of
the agreement further supports the company`s longer term strategy of labor
stability and partnership with the labor unions,`` said Calin Rovinescu,
Executive Vice-President, Corporate Development and Strategy. ``I commend the
CAW for their leadership in moving forward the integration process of the two
airlines to the benefit of all stakeholders,`` concluded Mr. Rovinescu.

``The ability to have customer service employees at Air Canada and
Canadian Airlines serve each other`s customers, interchangeably, is the single
most important step in streamlining our customer service delivery,`` said
Eileen McCoy, Executive-Vice-President, Customer Service. ``The ability to
distribute the workload equitably among our customer service staff will
visibly improve levels of service to our customers and relieve the pressure
on our frontline employees. I commend the CAW leadership for their clear
understanding and support of our employees` commitment and desire to provide
the highest level of service possible to our customers,`` concluded Mrs.
McCoy.

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