Air Canada Provides Restructuring Update

Air Canada advises that the Tenth
Report of the Monitor, a comprehensive update on the substantial progress made
in 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 www.aircanada.com .
The report includes an update on the following:
a) The equity solicitation process;
  b) The Amex Card Partner Agreement;
  c) Pension matters;
  d) The status of discussions with labour unions;
  e) Negotiations with aircraft lessors;
  f) An agreement with respect to aircraft leases involving lenders
    supported by Export Credit Agencies;
  g) The General Electric Capital Aviation Services (GECAS)
    aircraft/financing agreement;
  h) Repudiation of property leases;
  i) Restructuring of other contractual commitments;
  j) Product distribution systems;
  k) Operating results;
  l) Cash flow projections to December 12, 2003;
  m) Estimated obligations of the Company arising subsequent to April 1,
    2003;
  n) Operating agreement with Lufthansa;
  o) Claims process;
  p) The Unsecured Creditor Committee;
  q) Progress in the development of the restructuring plan;
  r) Directors and Officers liability insurance coverage;
  s) Ancillary proceedings under Section 304 of the US Bankruptcy Code;
    and
  t) Extension of the stay of proceedings.
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