Air Canada clarified today that a tentative
agreement reached with the Canadian Auto Workers (CAW) on September 29, 2000
is a two year extension to an existing agreement that expires in 2002. The
extension means the agreement will expire in March 2004.

The new agreement, to be taken to CAW membership for ratification,
provides for workforce integration, equitable workload distribution and the
ability to have customer service employees at Air Canada and Canadian Airlines
serve each other`s customers.

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