Air Canada Update on Restructure

Air Canada provides the following update
on the airline`s restructuring under the Companies` Creditors Arrangement Act:
Court of Appeal for Ontario Dismisses Appeal from Global Payments Canada Inc.
The Court of Appeal for Ontario today issued a decision unanimously
dismissing an appeal by Global Payments Canada Inc. relating to arrangements
for processing of credit card payments.
Global Payments was seeking an order requiring Air Canada to post
security for credit card processing services. Mr. Justice James Farley`s order
of May 7,2003, rejecting that request was upheld by the Court of Appeal.