TORONTO, May 27, 2003…Air Canada Jazz announced today that it has successfully completed tentative agreements with its two remaining unions. The two latest agreements are with its flight attendants, represented by Teamsters Canada, and its maintenance personnel, customer service staff and crew schedulers, represented by the Canadian Auto Workers Association. In reaching these agreements, Jazz has completed negotiations with all its unions, and has achieved total labour and management cost reductions of $110 million annually through a combination of productivity improvements and wage reductions.

The terms and conditions of these tentative agreements are confidential and are subject to ratification by their union membership. Jazz currently employs approximately 900 customer service agents, 630 flight attendants, 650 maintenance staff and 28 crew schedulers.

“The successful completion of these tentative agreements with all our labor groups is a very important and fundamental step in our restructuring process”, said Joseph Randell, President and Chief Executive Officer of Air Canada Jazz. “These agreements provide the increased productivity and cost reduction measures required to return Jazz to profitability.”

On May 24, Jazz announced it has reached tentative agreements with it pilots, who are represented by the Air Line Pilots Association, International (ALPA), and with its dispatchers, who are represented by the Canadian Air Line Dispatchers Association (CALDA).

“These milestones demonstrate the hard work and dedication of our employees and our unions. We are deeply indebted to Mr. Justice Warren Winkler for his guidance and commitment to this process”, said Mr. Randell.

Air Canada Jazz is Canada’s second largest airline operating a fleet of over 90 aircraft including Dash 8, Bombardier CRJ and British Aerospace 146 aircraft throughout Canada and the United States.