Air Canada Completes Sale-Leaseback

MONTREAL, Oct. 1 /CNW/ - Air Canada today announced the completion of an
engine sale-leaseback transaction providing approximately CAD$100 million of
new funding for the carrier, which will be used for repayment of third quarter
debt maturities. In an agreement with GE Engine Leasing and Shannon Engine
Support, Air Canada sold and leased-back eleven owned spare engines.

“We will continue to access financing, including sale and leaseback
transactions and asset sales to maintain the company`s liquidity requirements
in these uncertain times for the airline industry world-wide,” said Rob
Peterson, Executive Vice President and Chief Financial Officer.

GE Engine Leasing is a joint services unit of GE Engine Services and GE
Capital Aviation Services Inc. Shannon Engine Support is a wholly-owned
subsidiary of CFM International. CFM is a 50/50 joint company between SNECMA
Moteurs of France and General Electric of the United States.