Air Canada Update on Restructuring

Air Canada provides the following update
on the airline`s restructuring under the Companies` Creditors Arrangement Act:
Status of aircraft lease negotiations:
Air Canada said today that it has completed memoranda of understanding
covering an additional 14 aircraft with three different aircraft lessors
bringing to 135 the total number of aircraft with restructured leases and is
in the process of finalizing memoranda of understanding on another 59 aircraft
with 12 different lessors. These 194 aircraft represent approximately 60 per
cent of Air Canada`s fleet. Substantive discussions are currently underway
with respect to the balance of the fleet.
Air Canada is recommencing lease payments as memoranda of understanding
are completed.
Announcements on these various agreements will be made during the course
of the coming weeks.