Air Canada today confirmed its acquisition
of twelve Airbus A321 and two additional A319 aircraft as part of its on-going
growth and fleet renewal strategy. The aircraft will be purchased from
Airbus. Air Canada will begin taking delivery of the aircraft in October 2001
for immediate deployment in its domestic and transborder markets.  Air Canada
thus becomes the first airline in Canada to operate the A321.

All 14 aircraft are from the Airbus A320 family, featuring operational
savings due to commonality in training, crews and maintenance. All aircraft
will be powered with CFM engines.

``Recent long term labour agreements provide us with the necessary
stability to proceed with the company`s growth. This is the first of a series
of announcements on fleet expansion and renewal,`` said Robert Milton,
President and Chief Executive Officer. ``This acquisition will allow us to
start our fleet renewal program to replace older generation aircraft such as
the DC-9 and Boeing 737 aircraft. The introduction of Airbus A321 aircraft to
our fleet builds on the many benefits derived from commonality of A320 family
aircraft types.  The new A321 fleet will allow us to increase capacity in a
highly cost efficient manner on high density short to medium haul North
American routes.``

The 160-seat A321 will be configured 3x3 in economy and 2x2 in business
class.  Flying range is 4200 kilometres with a cargo payload of 3005 kg.  The
aircraft has a list price of USD$60 million. Deliveries will be taken October
2001 to December 2002.

The 112-seat A319 will be configured 3x3 in economy and 2x2 in business
class.  Flying range is 4441 kilometres with a cargo payload of 2141 kg.  The
aircraft has a list price of USD$45 million. Deliveries will be taken July and
October 2002.

With Air Canada`s acquisition of Canadian Airlines on July 6, 2000, the
combined operating fleets of Air Canada and its wholly-owned subsidiaries
currently number 372 aircraft.  This includes 35 A319s, 47 A320s, 13 of which
are in Canadian Airlines fleet, four A330-300s, with four more on order, and
12 A340-300s.  Air Canada is one of the world`s largest operators of Airbus
aircraft.  In 1990, it became the first carrier in Canada to operate the A320,
and in 1995 it became the first carrier in North America to operate the A340.

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