Air Canada Provides Update on Restructure

Air Canada today provided the following
update on the airline`s restructuring under the Companies` Creditors
Arrangement Act.
Extension of the Stay Order
Mr. Justice James Farley of the Ontario Superior Court of Justice
approved an extension of the original stay period order granted to Air Canada
on April 1, 2003 to September 30, 2003. The purpose of this extension is to
complete the Company`s post-restructuring business plan, renegotiate the terms
of aircraft leases with lessors, complete the review and renegotiation of
operating contracts and commence the process to raise approximately $1.35
billion of exit financing.