Agreement Reached Between Air Canada And Its Pilots

26th Aug 2000

Air Canada is pleased to announce that it has
today reached a tentative settlement with its pilots.  Air Canada said that
the decision announced earlier today by the Air Canada Pilots` Association
(ACPA) to accept federal mediator Bruce Outhouse`s recommendations and to sign
a four-year collective agreement will provide the carrier with the stability
to ensure its growth as a major global carrier.

The two parties have accepted the mediator`s recommendations and will
finalize the collective agreement in the coming days.  ACPA has confirmed that
it will not exercise its strike mandate in view of this settlement, pending

``I am very pleased that the uncertainty is now over for Air Canada`s
customers, employees and shareholders,`` said Robert Milton, President and
Chief Executive Officer of Air Canada.  ``I thank our customers for their
understanding and patience throughout this difficult process.``

``I believe the pilots of Air Canada to be as professional and capable a
group as exists anywhere in our industry and I am glad that all of us at Air
Canada can put this difficult negotiation process behind us and get on with
our bright future,`` said Mr. Milton.  ``I would like to thank all those who
have participated in this process for their efforts, in particular the two
negotiating teams, Mr. Outhouse and the Minister of Labour, Claudette

``The four year term of the agreement will provide us with the necessary
stability to realize the company`s true potential for growth as a major global
carrier,`` said Mr. Milton.  ``While the agreement represents compromise by
both parties on key issues, the outcome is a win-win for all of Air Canada`s
stakeholders—customers, employees, particularly its pilots, and shareholders.  The agreement provides tangible benefits for the pilots while
it enables Air Canada to enhance its network by introducing a low-fare carrier
and jet service to more communities throughout Canada,`` he concluded.




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