Press release today:

AIR CANADA ANNOUNCES NEW TANGO SERVICE TO REGINA/SASKATOON AND THUNDER BAY; MORE SUMMER SERVICE TO VANCOUVER, WINNIPEG AND HALIFAX

Tango fleet to grow to 9 aircraft; Website continues to draw over 80% of bookings

MONTREAL, January 10, 2002 – In response to rapidly growing customer demand for its low fare Tango service, Air Canada is pleased to announce today the addition of three new destinations to its Tango network. Effective April 1, daily Tango service will commence between Regina/Saskatoon-Toronto and Thunder Bay-Toronto, with tickets available for sale immediately. Until January 24, special one way introductory fares are available including Regina/Saskatoon-Toronto for as low as $169 and Thunder Bay-Toronto for as low as $89. All Tango fares are available with no minimum stay and no advance purchase requirement.

Following the recent network addition of St. John’s on January 7, and with the addition of these three new destinations, the Tango network expands to include twelve major Canadian cities from coast to coast.

More Summer Service and More Aircraft

In addition, effective June 17, Tango’s existing service on high demand routes will be expanded to accommodate increased traffic during the busy summer travel season. Tango’s Toronto-Vancouver service will increase from two to three daily non-stop flights, Toronto-Winnipeg service will increase from one to two daily non-stop flights and Toronto-Halifax service will increase from one non-stop and two one-stop flights daily to four daily flights including two non-stop services. For summer 2002, Tango will offer over 290 departures per week, with a fleet of nine aircraft including six Airbus 320 aircraft currently in operation.

“With just over two months of operations now behind us, Tango continues to grow as a popular consumer choice for highly affordable, reliable air service coupled with Air Canada’s reputation for the highest operational standards,” said Robert Milton, President and Chief Executive Officer, Air Canada. “With the addition of Regina, Saskatoon and Thunder Bay, and additional summer service on select existing routes, we continue to expand Air Canada’s participation in the rapidly growing market for low fare, no frills service.”

Recent survey results indicate strong support among Canadians for Air Canada’s provision of a low fare carrier. A nationwide telephone survey of 500 Canadians conducted by Ipsos-Reid between November 30 and December 6, 2001 found that 82 per cent of Canadians would fly a low fare, no frills airline operated by Air Canada. Further survey results are available at www.aircanada.ca under “Latest News”.

The schedule for the new Tango services is as follows:


REGINA/SASKATOON SERVICE
AC#6049
Departs Toronto Arrives/Departs Regina Arrives/Departs Saskatoon Arrives Toronto
12:00 14:20/15:00 15:45/16:30 20:39

THUNDER BAY SERVICE
AC#6048 AC#6047
Departs Thunder Bay Arrives Toronto Departs Toronto Arrives Thunder Bay
8:50 10:30 21:35 23:20

Service between Thunder Bay-Toronto offers connections to Tango flights to Ottawa, Montreal, Halifax, Calgary and Vancouver.

Record Web Bookings

Tango customers continue to respond in record numbers to the ease of booking Tango flights at www.flytango.com. Over 80 per cent of Tango flights are booked on its dedicated website – a cost saving element that contributes to Air Canada’s ability to operate Tango at a lower cost and therefore offer low fares.

About Tango

Tango by Air Canada, a separately branded service of Air Canada, commenced operations November 1, 2001. Tango now offers service through its Toronto hub to Vancouver, Edmonton, Calgary, Regina, Saskatoon, Thunder Bay, Winnipeg, Ottawa, Montreal, Halifax and St. John’s.

Tango offers consumers a no frills air travel alternative complementing Air Canada’s full service operations. Tango operates a fleet of distinctly branded aircraft, offering a unique “all extras are optional” in-flight service, including a menu selection of snacks and refreshments at reasonable prices and short feature audiovisual entertainment. The aircraft cabin offers an all-economy seating configuration matching Air Canada's industry-leading levels of in-flight comfort.

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