Air Canada Improves Schedule Between Canada and Israel

Air Canada today announced that it will offer
customers an improved flight schedule between Canada and Israel. In addition
to its four times weekly non-stop flights between Toronto and Tel Aviv,
effective November 1, 2002, Air Canada will offer daily service on a codeshare
basis with El Al between Toronto and Tel Aviv, as well as the choice of
convenient daily connecting flights via Frankfurt to Tel Aviv on a codeshare
basis with its Star Alliance partner Lufthansa. These new codeshare services
are subject to government approval.

“These codeshare agreements benefit Air Canada`s customers by providing
easy access to a greater choice of flights,” said Bill Bredt, Vice President,
Network and Revenue Management. “We constantly strive to provide our customers
with superior schedules, so in addition to maintaining our four times weekly
operation, we are very pleased to offer our customers this improved schedule
with El Al and Lufthansa.”

Air Canada will continue operating four times weekly non-stop service
between Toronto and Tel Aviv. The addition of codeshare flights operated by El
Al will allow Air Canada to improve its schedule by offering customers the
choice of daily non-stop service. Similarly, the Lufthansa codeshare flights
will provide Toronto- and Montreal- originating customers the added choice to
travel via Frankfurt with convenient daily connections to and from Tel Aviv.