Air Canada Becomes First Operator in Canada of Cost-Efficient and Customer-Friendly Airbus A321

Air Canada moved ahead in its fleet renewal plan with the official delivery today of the first of 12 new Airbus A321, a modern cost-efficient aircraft perfectly suited to serve high-traffic markets within North America. Air Canada thus becomes the first airline in Canada to operate the state-of-the-art, twin-engine jet, and the first airline in Canada to operate all three aircraft types in the Airbus A320 family.

Air Canada will take delivery of five A321 aircraft by the end of 2001 with an additional seven to be delivered by December 2002. Together with the withdrawal of its entire DC-9 fleet of 17 aircraft and 20 of its 42 Boeing 737 aircraft, Air Canada's fleet modernization program will give it one of the youngest fleets in the world with an average age of just 9.2 years effective January 1, 2002.

"The delivery of our first A321 marks an important milestone in the on- going renewal of the Air Canada fleet while achieving significant cost efficiencies," said Robert Milton, President and Chief Executive Officer. "The new A321 fleet will replace older, less efficient DC-9 and Boeing 737 aircraft with more modern, comfortable aircraft that fly further, use less fuel, carry more passengers and cost less to operate."

Air Canada's new A321 fleet features custom-designed Executive Class seats and a refreshing new interior design and colour scheme throughout both cabins. The A321s also offer 110-volt laptop power ports at every seat in the Executive Class cabin and at selected seats in the forward section of the Hospitality cabin. Air Canada has configured the A321 to offer a generous 39 inch pitch in Executive Class and 32 inches in Hospitality.

The 166-seat A321 is the sister ship to the mid-sized A320, with 132 seats being reconfigured to 140, and smaller A319, with 112 seats being reconfigured to 120 seats, all in a two-cabin Executive Class and Hospitality configuration. The range of the A321, as well as its passenger features and roomy cabin, are similar to the A320 and A319. Due to its seating capacity, it is ideally suited to serve heavily travelled routes within Air Canada's North American network such as between Toronto and Calgary, Edmonton, Montreal, Ottawa, New York and Florida destinations. Air Canada's first A321 is scheduled to begin operation on the Toronto-Calgary route Monday December 3.

The A321 brings substantial cost-saving and revenue-generating opportunities to the airline. Among them:

- Commonality with the A319 and A320 in terms of pilot, in-flight, maintenance and ground handling training;

- Commonality with the A319 and A320 in terms of engines (CFM56-5), spare parts and flight simulators -- reducing the new aircraft program's capital costs;

- Greater range capability (more than twice that of the DC-9);

- Higher fuel efficiency (40 per cent less fuel burn per seat than the DC-9);

- Increased passenger revenue generating potential (66 seats more than the B737 and 75 more than the DC-9);

- Increased cargo revenue generation potential (approximately three times more cargo load capacity than both the Boeing 737 and DC9);

Air Canada is one of the largest Airbus operators in the world. Currently, the airline operates 37 A319s with eleven on order, 47 A320s with three on order, one A321 with 11 on order, eight A330-300s and 12 A340s with five on order.

Air Canada provides scheduled and charter air transportation for passengers and cargo to more than 150 destinations on five continents. Canada's flag carrier is the 10th largest commercial airline in the world and serves more than 30 million customers annually with a fleet consisting of more than 300 aircraft. Air Canada is a founding member of Star Alliance providing the world's most comprehensive air transportation network.