Air Canada and Canadian Airlines today announced
they have reached agreement with American Airlines on the termination of their
codeshare relationship with the U.S. carrier. The termination of codesharing
will be subject to a 30-day notice period, and will take effect no later than
October 1, 2000.

The airlines agreed to terminate their codesharing relationship citing
incompatibility with current commercial objectives. The termination will be
implemented in conjunction with other commercial initiatives resulting in no
negative effect on levels of service provided to customers by the airlines.

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