Air Canada and its Regional Carriers Announce More New Routes for 2001

Air Canada and its regional carriers today announced more new routes to be launched in 2001, bringing the total to 18 new non-stop routes announced in recent weeks. The introduction of these new routes, mostly serving domestic and U.S. markets, follows an extensive exercise to adjust capacity in line with changing demand. The airline will maintain a zero growth strategy for 2001, notwithstanding the launch of these new routes.

"For several months, we have aligned and refined our first-ever integrated winter schedule to ensure that it reflects demand and utilizes aircraft as efficiently and effectively as possible," said Lise Fournel, Executive Vice President, Commercial. "Following the realignment of our schedule, we are now in a position to redeploy capacity to new markets and to capitalize on great business opportunities. We are confident that our decisive actions to move capacity from underperforming to strong markets will bear positive results moving forward."

DOMESTIC

To expand Air Canada's regional network and further build its Calgary hub, the following two new year-round domestic services will be launched this summer:

CALGARY-VICTORIA, BC Twice daily year-round service starting

June 29 -- The only daily non-stop service

CALGARY-ABBOTTSFORD, BC Three times daily year-round service starting

June 29

The following three new domestic summer services will allow Air Canada to capture strong seasonal leisure traffic in these specific markets:

TORONTO-SYDNEY, NS Three times weekly summer service starting June 29

TORONTO-DEER LAKE, NF Twice weekly summer service starting June 28

TORONTO-GANDER, NF Twice weekly summer service starting June 30

Air Canada will also reintroduce daily non-stop summer service between Vancouver and Halifax and from Toronto to Kelowna on May 14 and June 4, respectively.

In addition, Air Canada recently announced it will commence daily non- stop summer service between London, Ontario and Calgary with same plane service to Vancouver on June 29, 2001.

TRANSBORDER

With the introduction of the following new transborder routes, Air Canada and its regional carriers will further develop their business product to and from the U.S. while strengthening their Toronto hub. Air Canada and its regional carriers will now offer upwards of 300 non-stop flights every business day to 58 U.S. destinations:

TORONTO-GREENSBORO, NORTH CAROLINA Twice daily year-round service starting June 11

TORONTO-JACKSONVILLE, FLORIDA Daily year-round service starting June 29

TORONTO-KALAMAZOO, MICHIGAN Twice daily year-round service starting June 4

In addition, Air Canada's regional carriers recently announced the following new non-stop routes out of Toronto and Montréal:

TORONTO-INDIANAPOLIS, INDIANA Twice daily year-round service starting May 7

MONTREAL-ALBANY, NEW YORK Twice daily year-round service starting April 9

MONTREAL-MANCHESTER, NH Twice daily year-round service starting April 9

In response to high demand in Western Canada-U.S. markets, Air Canada will consolidate its position as the leading Canada-U.S. transborder air carrier from coast to coast with the introduction of the following four routes in Western Canada:

VANCOUVER-LAS VEGAS, NEVADA Twice weekly (Thursday/Sunday) service starting October 25

VANCOUVER-PHOENIX, ARIZONA Daily service starting October 29

CALGARY-PHOENIX, ARIZONA Daily service starting October 29

CALGARY-LAS VEGAS, NEVADA Twice weekly (Thursday/Sunday) service starting October 25

INTERNATIONAL

Air Canada recently announced that it will launch four times weekly winter service between Vancouver and Delhi on October 19. The introduction of Air Canada's first-ever transpolar route will be particularly attractive to the large Asian communities in Western Canada and the United States who have forged important links between North America and South Asia.

As recently announced, Air Canada will commence five times weekly non-stop summer service between Edmonton and London-Heathrow on June 1, 2001. With this new international service, Air Canada is responding to customer demand for non-stop service between Alberta and the U.K. during the summer peak. The re-introduction of this route is also part of its ongoing commitment to developing air transportation to and from Edmonton and the province of Alberta.

On the occasion of the 50th anniversary of Air Canada's Montréal-Paris service, the airline is introducing a second daily non-stop service during the peak summer season from June 15 until September 30, 2001.

Air Canada has also re-scheduled its double daily Canada-Hong Kong service to offer convenient twice-daily daylight departures from Vancouver effective June 1.