President and Chief Executive Officer,
Robert Milton, paid tribute to the diligence of the airline`s employees in
response to Air Canada having been named the world`s safest airline. According
to an independent study undertaken by air safety specialists, UK-based
FlightSafe Consultants Ltd, Air Canada received top ranking in an analysis of
more than 500 airlines using ten management and environment criteria.

``We are very pleased that Air Canada`s on-going focus on safety has been
recognized by this study,`` said Mr. Milton. ``This recognition can be
attributed to our employees` diligence and dedication to excellence. Moreover,
we are delighted to be joined by many fellow Star Alliance airlines among the
top rankings.``

``Safety is our everyday business and it remains our number one priority
as we move forward with the integration of Air Canada and Canadian Airlines.
As we meet the challenges of integrating two of the largest airlines in the
world, Air Canada continues to receive recognition from respected industry
sources that highlight our commitment to safety, customer service and
excellence.``

In the July 10, 2000 edition of the respected aviation industry magazine,
Aviation Week & Space Technology, Air Canada was ranked as Best Managed Major
Airline in North America. The overall ranking was based on the 1999 financial
performance criteria of asset utilization, productivity and financial
stability. In terms of asset utilization, the publication gave Air Canada the
highest ranking of any major airline in the world.

On July 24, 2000 Air Canada received the Canadian Information
Productivity Award of Excellence for having made innovative and effective use
of information technology in the development of its Express Check-in kiosks.
The kiosks, currently available at Toronto, Vancouver, Montreal and Ottawa
airports, significantly reduce check-in wait time.

Air Canada is Canada`s premier domestic and international full service
airline, providing scheduled and charter air transportation for passengers and
cargo. Together with Canadian Airlines and its regional carriers, Air Canada
offers an integrated network serving over 205 destinations on five continents
directly with fleets totaling more than 365 aircraft. With the acquisition of
Canadian Airlines on July 6, 2000, Air Canada became the 11th largest air
carrier in the world, as measured by passenger traffic.

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