TRANSPORT CANADA APPROVES AOC APPLICATION
Mar. 29, 2001.

Today marks a new date in Canadian Aviation history. Transport Canada has approved the amended ingle Air Operator Certificate (AOC), effective March 29, to allow for the total consolidation of the former Canadian Airlines operations, maintenance, aircraft and routes under one AOC and one company name - Air Canada.

The regulatory approval means that the timetable for complete integration of our operations has been accepted and that management control, including the operation of aircraft in all of our fleets, now formally resides with one organization and under a single AOC, Capt. Robert Giguere, Executive Vice President, Operations, will
have the overall direct control and responsibility for Air Canada's compliance with the Canadian Aviation Regulations.

Work remains to be completed before full integration is finalized. Transfer of the CP Mainline Operating Carrier Code to AC's in all operational systems, integration of flight crew scheduling and tracking operations for several fleet types, SCEPTRE to ARTOS data migration in Technical Services' maintenance operations, and resolution of labour issues are just some examples of the remaining tasks.

Air Canada's Core Integration Team worked diligently throughout the Year 2000 and oversaw major milestones such as the joint 'Quick Wins' initiative that saved AC millions of dollars, the first joint summer schedule, the terminal changes in Toronto, cutover to Res III (the single biggest milestone occurring October 21 last year when one million customer reservations were successfully cutover), and the October 28 cutover from the Sabre operational systems to AC's suite of operational systems.

Most recently, a joint AOC Integration Team with representatives from many different departments within Air Canada and the former
Canadian Airlines worked since January of this year to complete our AOC application to Transport Canada. "The regulatory approval is a direct result of the perseverance and dedication of hundreds of employees from the integrated airline, who have met firm deadlines to get the job done," said Capt. Al Alls, AOC Integration Team Director.

"I thank all those who have assisted us throughout the process and look forward to their continuing contributions, as we work towards completion of the integration timetable presented to Transport Canada," Al said.