Air Canada Update on Restructure

Air Canada today provided the following
update on the airline`s restructuring under the Companies` Creditors
Arrangement Act.
Continuation of the Preliminary Injunction in the United States:  Judge Beatty of the United States Bankruptcy Court for the Southern
District of New York continued the preliminary injunction in place since
April 1, 2003, pursuant to Section 304 of the U.S. Bankruptcy Code. The next
hearing in respect to this matter is scheduled for July 8, 2003.

CIBC Agreement on Aerogold and Additional Financing Commitment:  Air Canada received late yesterday an unsolicited and non-binding
expression of interest for a credit card agreement with Aeroplan. Today in
court, the scheduled hearing to seek approval of the CIBC Aerogold agreement
was adjourned until May 1 pending the Monitor`s review of the proposal.
Negotiations with Labour:  Discussions begin tomorrow, April 30, between Air Canada, the Court-
appointed Monitor and Union leaders respecting labour cost realignment
including as to immediate interim measures. Discussions with Air Canada Jazz
unions will commence May 6, 2003.