Air Canada Announces Management Reorganization and Reduction

Air Canada announced today the reorganization of its executive management team and the reduction of an additional 300 management and non-unionized positions bringing the total management and non-unionized job reduction to 1,100.

"The additional management job reductions are consistent with the realignment of responsibilities at the executive level and our ongoing focus on a leaner, more efficient and cost effective operation," said Robert Milton, President and Chief Executive Officer. "As we restructure the airline to compete profitably in the new environment, we are eliminating a layer of executive management in many areas and pushing more responsibility down to the next level of management. Management ranks will be reduced by more than 25 per cent when the reorganization is completed," he said.

The airline announced the following changes at the executive level:

- Ross MacCormack, Senior Vice President, International & Alliances is retiring effective September 30, 2003 after 32 years with Air Canada. The International and Alliances group will report directly to Montie Brewer,Executive Vice President, Commercial.

- Doug Port, Senior Vice President, Customer Service is retiring effective September 30, 2003 after 30 years with Air Canada. Effective October 1st, Brad Moore, currently Senior Director, Inflight Services will assume the role of Vice President, Customer Service.

- Robin Wohnsigl, Senior Vice President, Air Canada Maintenance, will be leaving Air Canada to pursue other interests. Effective August 1, 2003, Jon Turner, currently General Manager, Aircraft Programs, will assume Robin's responsibilities as General Manager, Air Canada Maintenance and Aircraft Programs.

- Steve Markey, Vice President, Government Relations & Regulatory Affairs will be leaving Air Canada to pursue other interests. Duncan Dee, Vice President, Corporate Affairs, will assume direct responsibility for the government relations and regulatory affairs portfolio.

- Alice Keung, Vice President, Information Technology and Chief Information Officer, has left the company to pursue other interests. Lise Fournel, President and CEO, Destina, will assume, on an interim basis, the Chief Information Officer portfolio.

"The departing executives have, without exception, all made important contributions throughout their careers with Air Canada and we wish them well as they move into new phases of their careers and lives," said Mr. Milton.

This realignment positions Air Canada as having the least number of vice- presidents of any international network carrier in North America. As part of the restructuring process, 1,100 management and non-unionized jobs are being eliminated contributing to an overall payroll cost reduction for this employee group of almost 40 per cent. The airline is currently implementing these job reductions on an ongoing basis with approximately 650 non-unionized positions already eliminated and a target for completion by the end of the year.