Air Canada Appoints Ombudsman

Air Canada President and Chief Executive
Officer, Robert Milton, today appointed North America`s first airline
ombudsman to oversee the concerns of the airline`s customers. Air Canada`s new
customer ombudsman, Michelle Perreault-Ieraci, is a 25 year veteran of Air
Canada having occupied various positions in the area of human resources,
including Director, Social Rights, and Director, Employment Equity &
Linguistic Affairs. Ms. Perreault-Ieraci reports directly to Robert Milton.

``I am pleased to appoint Michelle Perreault-Ieraci as Air Canada`s
customer ombudsman``, said Robert Milton, President & Chief Executive Officer.
``As North America`s first airline ombudsman, Michelle, on behalf of Air
Canada, will lead the way setting new standards of transparency and
accountability to our customers in this new, rapidly evolving environment.

``Air Canada recognizes that some customers are being inconvenienced as
the company works its way through the highly complex integration process. We
also listened carefully to the concerns raised during the public consultation
process surrounding the restructuring of the airline industry in Canada over
the past months``.

Air Canada`s Office of the Ombudsman will open on September 5, 2000. On
that date, Ms. Perreault-Ieraci will become Air Canada`s prime liaison with
the soon-to-be appointed federal government Air Travel Complaints Commissioner
and the Canadian Transportation Agency, the government agency charged with
administering transportation legislation and policies in Canada.

Later this year, through the ombudsman, Air Canada will voluntarily
introduce a Customer Bill of Rights. This charter will clearly define the
standards of service to which Air Canada commits.