Following receipt of Onex Corporation`s announcement of an unsolicited below-market offer for Air Canada, Air Canada`s initial reaction is as follows:

* Value appears to be taken from Air Canada shareholders and transferred to Canadian Airlines` shareholders and creditors, American Airlines and Onex Corp.;

* It is difficult to see in the Onex proposal any benefit for Air Canada shareholders or employees;

* Control in fact of Air Canada would be with American Airlines and Onex Corporation;

* The formal proposal has not been received by Air Canada. When received, it will be reviewed in detail with Air Canada`s external advisors;
* Air Canada will continue to focus on protecting and building shareholder value as its first priority;
* Air Canada intends to seek clarification from the federal government regarding any change to the 10 % ownership threshold in the Air Canada Public Participation Act;
* Air Canada believes it has addressed government priorities to resolve the restructuring of the Canadian airline industry through its offer to purchase the international operations of Canadian Airlines which would preserve domestic competition.

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