First flight also launches new Air Canada Express regional brand name

MONTREAL, May 1 /CNW Telbec/ - Air Canada resumed service at the City Airport in downtown Toronto today, providing customers with additional options for flying Canada's busiest air corridor between Toronto and Montreal.

"Air Canada's return to the Toronto Island airport has been much anticipated as it will give customers even more options for flying to and from the heart of Canada's largest city and its financial and entertainment capital.  Our inaugural City Airport route to to Montreal will complement our existing Rapidair service between Montreal and Pearson International Airport. Air Canada provides the fullest range of options and amenities on this heavily-travelled route, with the most frequencies of any carrier, leaving as often as every 30 minutes at peak periods and hourly through the day. Air Canada alone offers lounges at all airports, Aeroplan and the reliability of Air Canada's award-winning service," said Ben Smith, Executive Vice-President and Chief Commercial Officer.

Service between Toronto City Airport and Montreal will be operated by Sky Regional Airlines Inc. It will provide up to 15 daily non-stop return flights hourly between 07:30 and 21:30  from Toronto and between 6:45 and 20:45 from Montreal. Customers will enjoy the comfort of state-of-the-art Bombardier Q-400 aircraft with leather seats, complimentary premium bar service and snacks, as well as the ability to collect Aeroplan^® Miles through Canada's leading loyalty program. In Toronto, a complimentary, regularly scheduled shuttle bus service is available between the Fairmont Royal York Hotel and the Toronto City Airport. Prior to boarding, customers can enjoy free lounge access complete with wi-fi and refreshments.

Sky Regional flights from the City Airport will fly under the new Air Canada Express brand, which will be applied to all Air Canada regional services operating under a capacity purchase agreement. The livery will be gradually adopted by Air Canada's regional airline Jazz over a five-year period, starting with the introduction of their new fleet of Q400 aircraft on June 1, 2011. Other regional carriers, including Central Mountain Air, Air Georgian and EVAS, will transition to the new livery over their regular aircraft paint schedule.

"This change does not impact our regional operations, but having a single, readily recognizable brand such as Air Canada Express for all our regional services will make it easy for customers, who can book flights assured of a consistently high-quality travel experience. This initiative is also in line with industry standards with respect to the relationship of mainline and regional carriers around the world," said Mr. Smith.

About Sky Regional Airlines, Inc.

Sky Regional Airlines Inc. was founded by Russell Payson. He is well known in the Canadian aviation world for his business aviation operations which provide uncompromising service and unparalleled safety and security. Sky Regional Airlines Inc.'s 100 employees are based in Montreal and Toronto, and have a wide-range of airline experience including operations and customer service.

About Air Canada

Air Canada received top honours in Business Traveler magazine's Best in Business Travel 2010 annual reader survey, winning five awards: Best Flight Attendants in North America, Best In-flight Services in North America, Best North America Airline for Business Class Service, Best North American Airline for International Travel, and Best Airline Web Site. Readers of Global Traveler magazine voted Air Canada Best Airline in North America, for the sixth consecutive year in their 2010 reader survey. Air Canada was named Best Airline North America in a worldwide survey of more than 17 million air travelers conducted by independent research firm Skytrax for its 2010 World Airline Awards.

Air Canada is Canada's largest domestic and international full-service airline providing scheduled and charter air transportation for passengers and cargo to more than 175 destinations on five continents.  Canada's flag carrier is the 15th largest commercial airline in the world and serves 33 million customers annually. Air Canada provides scheduled passenger service directly to 59 Canadian cities, 59 destinations in the United States and 60 cities in Europe, the Middle East, Asia, Australia, the Caribbean, Mexico and South America. Air Canada is a founding member of Star Alliance, the world's most comprehensive air transportation network serving 1,160 destinations in 181 countries.  Air Canada customers can collect Aeroplan miles for future rewards through Canada's leading loyalty program, and Top Tier members enjoy reciprocal frequent flyer benefits including lounge and priority services.  For more information on Air Canada visit aircanada.com and follow @AirCanada on Twitter and Facebook.