Air Canada And Competition Bureau Reach Agreement On Process To Offer For Sale Canadian Regional Air

Air Canada today announced that agreement has
been reached with the Competition Bureau regarding the process and methodology
governing the offering for sale of Canadian Regional Airlines and the
establishment of its value, all in accordance with the Undertakings negotiated
between Air Canada and the Competition Bureau in December 1999.
The investment banking firm of Donaldson, Lufkin & Jenrette has been
appointed to act as selling agent and has commenced its activities in that
regard.  It is anticipated that the sale process will proceed as expeditiously
as possible and that the offer period of sixty days required by the
Undertakings will be concluded in the third quarter of this year.

Canadian Regional Airlines operates a fleet of twin-engine turboprops and
Fokker F28 jets to 42 communities in Canada and the United States.