Canadian Airlines and Air Canada
announced today that starting in 2001, Canadian Plus and Aeroplan, the two
airlines` frequent flyer programs, will be merged into a single program that
incorporates the best of benefits, partners and rewards.

Effective January 1, 2001, all outstanding Canadian Plus points will be
fully converted to Aeroplan miles on a one-to-one basis.  Over the next
several weeks, nearly three million Canadian Plus members will be mailed
personalised letters detailing the process for converting Canadian Plus points
to Aeroplan miles.

``As Canadian Airlines moves towards integration with Air Canada, today`s
announcement ensures that our loyal customers will continue to enjoy exciting
rewards and benefits as members of the Aeroplan program,`` said Paul Brotto,
President and Chief Executive Officer of Canadian Airlines.

``We are delighted to welcome all Canadian Plus members into Aeroplan and
the Air Canada family,`` said Lise Fournel, Air Canada Executive Vice
President, Commercial. ``“Today`s announcement marks another milestone,
especially for our valued customers, as we move forward towards a successful
integration of Air Canada and Canadian Airlines.``

Canadian Plus memberships remain valid until the end of the year.
Canadian Plus and Aeroplan members may currently redeem points on either
airline. Commencing in early January 2001, Canadian Plus members, as new
members of Aeroplan, will be able to redeem from the combined total of their
Canadian Plus points and Aeroplan miles.

Once the two frequent flyer programs are combined, over five million
members will be able to earn miles through an extensive network of quality
partnerships with hotels, car rentals as well as financial and
telecommunications institutions.

Canadian Airlines and Air Canada offer customers an integrated summer
schedule, including 32 new routes, 12 destinations and close to 1 000 daily
non-stop flights.

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