MONTREAL, Aug. 10 /CNW Telbec/ - Air Canada provides the following update
on the status of restructuring claims under the Companies' Creditors
Arrangement Act (CCAA):

All Restructuring Claims Filed by Labour Unions Now Resolved
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Air Canada said today that the last of the restructuring claims filed by
its unions has now been resolved. In proceedings before the Superior Court of
Justice yesterday, the Air Canada Pilots Association (ACPA) accepted the
determination of the Claims Officer and agreed to withdraw their pending
appeal. The Court also dismissed an appeal by the Canadian Union of Public
Employees (CUPE), representing the airline's flight attendants, of the
determination of its claim by the Claims Officer.
Ernst & Young Inc., the Monitor in the CCAA proceedings, has provided Air
Canada with the following status report regarding outstanding and accepted
claims in the CCAA process:

Claims Accepted or Determined assuming no appeals from Court decisions
are granted: $7,477.5 million
Total Disputed Claims: $1,460.5 million
Portion of Disputed Claims Allowed in Part: $519.9 million

MINIMUM POTENTIAL CLAIMS: $7,997.4 million
(Assumes all disputed claims resolved at amount allowed by Air Canada and
the Monitor)

MAXIMUM POTENTIAL CLAIMS: $8,937.9 million
(Assumes all disputed claims resolved at amount claimed by disputing
creditors)

It should be noted that the Total Disputed Claims amount reported does
not include claims for approximately $2,244 million which have been determined
by final order of the Court to be $124 million and from which leave to appeal
has been sought or where the time for seeking leave to appeal (21 days) has
not yet expired.

The Corporation intends to emerge from CCAA protection on September 30,
2004 following a creditor vote to be held on August 17, 2004. Air Canada will
post a more detailed update on the status of claims on its website
www.aircanada.ca/notice and on the website of its counsel at
www.stikeman.com/ac .