Air Canada President and CEO Robert Milton Comments On U.S. Government Airline Assistance Package

Air Canada President and CEO Robert Milton today commented on the announcement by United States Transportation Secretary Norman Mineta that the Bush Administration would be preparing a legislative package in the coming days to assist the U.S. airline industry following last week's terrorist attacks in New York and Washington, D.C.

"The terrorist attacks in the United States last week have devastated the airline industry," said Milton. "Full service North American carriers have already begun to feel the dramatic downturn in traffic and revenues since the attacks and the challenges going forward are bound to be great."

"The Bush administration has recognized the need to quickly stabilize the airline industry following last week's unfortunate events. This type of action will give the U.S. carriers an advantage over Canadian carriers if similar assistance is not forthcoming to maintain a level playing field among North American carriers."

"With more than 50 per cent of our revenues dependent on the Canada-U.S. transborder and international markets, Air Canada is significantly exposed to the downturn in the U.S. marketplace. We are working closely with the Canadian government to ensure a safe, financially sound and competitive global airline for Canada moving forward," Milton added.

Milton confirmed ongoing discussions with the Minister of Transport, the Honourable David Collenette on the financial health of the industry. He added that the preliminary cost of last week's three-day service disruption to Air Canada is at this stage estimated to be in the $100 million range.