Air Canada Technical Secures Maintenance Agreement

24th Oct 2002

Air Canada Technical Services, a division of
Air Canada, today announced that it has secured two agreements totaling
approximately CAD$67 million for the maintenance, repair and overhaul (MRO) of
Skyservice Airline`s fleet of Airbus A320 aircraft. The agreements include
options for additional aircraft to be added which, if exercised, could bring
the total potential revenue to Air Canada Technical Services of
CAD$85 million.

The agreements comprise a ten-year contract valued at CAD$37 million,
commencing October 11, 2002, for components maintenance to be performed at the
carrier`s Montreal maintenance base, and a five-year contract valued at
CAD$30 million, commencing December 10, 2002, for heavy maintenance work to be
handled at the carrier`s Winnipeg maintenance centre.

“A major long term contract such as this reflects Air Canada`s strong
reputation for quality service and technical expertise in a number of fleet
types including the Airbus A320 family,” said Robin Wohnsigl, President, Air
Canada Technical Services. “Our agreement with Skyservice Airlines is
consistent with our business strategy to leverage our expertise in maintenance
repair and overhaul (MRO) and grow our third party work.”

“This unique partnership fits our expanded business model,” said Rick
Marynissen, Director of Maintenance, Skyservice Airlines. “We certainly
appreciate Air Canada`s dedication to excellence.” Skyservice Airlines
provides charter air service to customers that include tour operators,
corporations, professional sport teams, governments, relief agencies, and
travel incentive companies. The airline is widely recognized for its quality
service, the reliability of its scheduling and the versatility of its charter
operations. Skyservice operates a modern fleet of over 26 aircraft including
Airbus A330s, A320s and A319s.

Air Canada Technical Services provides maintenance, engineering, repair,
supply and purchasing to support Air Canada`s mainline fleet of more than 220
aircraft, as well as other airline customers, in five maintenance categories:
airframes, engines, components, line and aircraft cabins. Air Canada Technical
Services employs approximately 8,200 staff in Canada, the U.S. and Europe,
with six major maintenance base centers located across Canada: in Halifax,
Montreal, Toronto, Winnipeg, Calgary and Vancouver.




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