Air Canada and Delta Air Lines today announced
they have signed a letter of intent that provides for codesharing in North
America and expansion of services between each other`s hubs. The proposed
commercial agreement would come into effect October 29, 2000, in conjunction
with the commencement of Air Canada`s winter schedule. It supercedes the
cancelled ten-year commercial agreement related to codesharing that Air Canada
and Canadian Airlines had with American Airlines as a result of Air Canada`s
planned acquisition of Canadian Airlines.

``Our partnership with Delta Air Lines will provide Air Canada and Delta
passengers with a stronger, more competitive North American network that
complements that of our global Star Alliance partner, United Airlines``, said
Lise Fournel, Executive Vice President, Commercial. ``Customers will benefit
from improved travel opportunities to markets currently underserved by Air
Canada, such as destinations in the southeastern United States, with
unsurpassed access via Delta`s Atlanta hub - the world`s largest. In addition,
travellers will benefit from additional links between Canada and the United
States with the introduction of new routes beginning with next winter`s
schedule.``

Frederick W. Reid, Delta`s executive vice president and chief marketing
officer, said, ``Delta`s partnership with Air Canada would ensure the
traveling public has an extensive and competitive network choice, and would
offer avenues for profitable growth by both carriers. The agreement links
Delta`s Atlanta, Cincinnati, Salt Lake City and Dallas-Ft. Worth hubs to Air
Canada`s network. Combined with additional transborder flights and Air Canada
Regional carrier domestic service, this agreement would open a broad world of
possibilities to our customers.``

Under the proposed agreement, Air Canada and Delta Air Lines would
codeshare on each other`s transborder flights between Canadian gateway cities
and Delta`s U.S. hubs: Atlanta, Cincinnati, Dallas and Salt Lake City, as well
as on each other`s selected domestic flights.  In addition, the agreement
would allow for the introduction of new services between each carrier`s North
American hubs with the winter schedule 2000-2001.

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