Air Canada Restructuring Update

Air Canada advises that the Eighth
Report of the Monitor, a comprehensive update on the airline`s restructuring
under the Companies` Creditors Arrangement Act (CCAA), has been completed by
Ernst and Young Inc. and will be available this evening at .
The report includes an update on the following:
a) the equity solicitation process; b) the Amex Bank of Canada Charge Card Partner Agreement;
c) pension matters;
d) the status of discussions with labour unions;
e) negotiations with aircraft lessors;
  f) the General Electric Capital Aviation Services (GECAS) aircraft/financing agreement;
g) repudiation of real estate leases;  h) restructuring of other contractual agreements;  i) product distribution systems;  j) the Unsecured Creditor Committee;
k) ancillary proceedings under Section 304 of the US Bankruptcy Code;
  l) operating results;  m) cash flow projections to October 24, 2003;
n) estimated obligations of the Company arising subsequent to April 1, 2003; and o) progress in the development of the restructuring plan.