Negotiations between Air Canada and the Air
Canada Pilots Association (ACPA) are ongoing and are expected to continue
during the coming days.

``The talks are detailed and both sides are working earnestly to resolve
the outstanding issues,`` said Calin Rovinescu, Air Canada`s Executive
Vice-President, Corporate Development & Strategy who is leading the talks for
the airline. ``We wish to reassure our customers that we remain firmly focused
on negotiating a settlement without disruption to our operations.``

In view of the ongoing talks, ACPA has not given the Company notice of
intent to strike. According to Canadian labour law, a union must give 72 hours
notice prior to taking any strike action.

Air Canada will not be commenting further on the discussions.

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