Air Canada Announces Executive Appointments, Organizational Structure

Air Canada President and Chief Executive
Officer, Robert Milton, today announced a number of executive appointments and
confirmed the Corporation`s organizational structure following the completion
of the financial restructuring of Canadian Airlines.

``What I am announcing today is another step in our evolution towards
becoming a truly global player in the continually expanding world of travel
related services,`` said Robert Milton in a message to Air Canada and Canadian
Airlines employees. ``In order to accomplish this, the top level of the
organization has been grouped into five main areas. Together, they recognize
the strength of our core airline business, as well as the desire to create or
build upon new travel related businesses in the future.``

The operations group of executives report to Mr. Milton directly while
the other four branches are led by the following Air Canada executives: Lise
Fournel, Executive Vice President, Commercial; Eileen McCoy, Executive Vice
President, Customer Service; Calin Rovinescu, Executive Vice President,
Corporate Development & Strategy; and Rob Peterson, Executive Vice President &
Chief Financial Officer.

Mr. Milton also announced the appointment of a number of executives at
Air Canada and Canadian Airlines. Within the Corporate Development & Strategy
branch, Steve Markey has been appointed Vice President, Government Relations
and Regulatory Affairs reporting to Doug Port, Senior Vice President,
Corporate Affairs & Government Relations. Mr. Markey was formerly Senior Vice
President, Corporate & Government Affairs at Canadian Airlines.

Three other executives at Canadian Airlines will be assuming positions
within Air Canada or its subsidiaries. Their appointments will be made in
future announcements. These individuals are: Mary Jordan, presently Senior
Vice President, Customer Service & Operations; Frances Fiorillo, presently
Vice President, Human Resources; and Ken Goosen, presently Vice President,
Maintenance & Engineering.


In addition, two Canadian Airlines executives will assume transitional
responsibilities in their respective fields: Haydn Acheson, presently Vice
President, Flight Operations, will assume the role of Vice President,
Operations acting as Chief Operations Manager for Canadian Airlines during the
transition as long as there are separate operating certificates for the two
airlines. Kevin Howlett, Vice President, Labour Relations, will report to Sue
Welscheid, Air Canada`s Vice President, People, during the transition. In
September, he will join Air Canada Regional as its Vice President, Labour

In today`s announcement, Mr. Milton also confirmed that Paul Brotto,
President and Chief Executive Officer of Canadian Airlines will assume a
senior executive position within Air Canada upon completion of his assignment
at Canadian Airlines.