<font face="Verdana, Arial, Helvetica, sans-serif" size="2">Air Canada and VARIG Brazilian Airlines expand networks to serve more points in North and South America

RIO DE JANEIRO, Nov. 21 /CNW Telbec/ - VARIG Brazilian airlines and Air Canada are jointly expanding their networks to offer customers easier access to additional destinations in North and South America on a codeshare basis. Effective December 5, 2002, Air Canada's network will grow to serve Rio de Janeiro, Porto Alegre and Salvador in Brazil as well as Buenos Aires, Argentina and Santiago, Chile on flights operated by VARIG. At the same time, VARIG's network will grow to serve Montréal, Ottawa, Calgary and Vancouver on flights operated by Air Canada. Schedules are timed to offer convenient connections to Air Canada-operated non-stop flights between Sao Paulo and Toronto, offered on a codeshare basis by VARIG.

"Expansion of the Air Canada network to additional markets in South America in cooperation with our valued Star Alliance partner, VARIG, is good for our customers because it improves air access between North and South America while building on our non-stop service between our respective hubs in Toronto and Sao Paulo," said Robert Milton, Air Canada's President and Chief Executive Officer, in Rio at a meeting of Star Alliance chief executives. "Doing this on a codeshare basis also makes good business sense because it provides a cost effective way to maintain service as well as enter new markets during this challenging economic environment."

"Through this codeshare cooperation, VARIG customers will benefit from convenient access to cities across Canada via Air Canada's main hub in Toronto," said Arnim Lore, VARIG's President and Chief Executive Officer. "The growth in VARIG's partnership with Air Canada reflects the value that Star Alliance brings while linking the most important markets in Canada to the most important markets in the Mercosur economic region, the third-largest trading zone in the world after the EU and NAFTA."..</font>