Calgary to Become Largest Employee Base for New Air Canada Regional Carrier

In response to the announcement earlier today
that the authorized selling agent for Canadian Regional Airlines (CRA),
Donaldson Lufkin and Jenrette, have advised Air Canada that no qualified bids
were received for the Calgary based carrier, Air Canada today confirmed that
Calgary will be an important base for Canada`s new, nationwide regional

``We look forward to welcoming Canadian Regional`s employees on board as
members of Canada`s new regional airline,`` said Joe Randell, President of Air
Canada`s regional airlines. ``We believe there are tremendous growth
opportunities for the new regional airline.  The City of Calgary and employees
of CRA will be part of this growth.``

Canadian Regionals` crew base, maintenance operations and senior
management positions will remain in Calgary. As such, Calgary will become the
largest base within the new Air Canada regional airline.  Randell acknowledged
that this is something the Calgary business community had been pushing for.

``With the integration of Canadian Airlines and Air Canada, Calgary has seen
some significant changes in the local air industry. Our announcement today
reinforces our strong commitment to the City of Calgary, and recognizes in
particular Calgary`s skilled work force and central transportation links.``

In addition to the announcement that Calgary will become the largest
employee base for the consolidated airline, Air Canada also announced that the
new regional carrier will include a Vice President for Western Canada, based
in Calgary, who will focus on the needs of customers and communities in
Alberta, the Prairies and British Columbia. ``It is important to be close to
our customers and communities, and western Canada is a very important part of
our network,`` stated Randell.


Canadian Regional Airlines currently employs 2,000 people across Canada,
approximately half of whom in Calgary.