MONTREAL, July 19 /CNW Telbec/ - Air Canada said today that it has
successfully concluded a consultation process with its retirees, managers and
administrative, technical and support employees (AT&S) for pension funding
arrangements that call for a moratorium on past service contributions for a
21-month period and fixed payments thereafter for the 2011-2013 period. This
follows on the ratification of identical pension funding agreements by all
five of Air Canada's Canadian based unions.
    Under an established protocol, affected Air Canada managers, retirees and
AT&S employees were given until July 18, 2009 to express opposition to the
pension funding agreement with the understanding that as long as no more than
one-third expressed opposition to the proposal, it would be deemed to be
accepted. As of the deadline, less than one per cent of affected individuals
had expressed disagreement.
    The Company has concluded comprehensive labour agreements on a cost
neutral basis for 21 months with its entire unionized workforce in Canada, in
addition to a pension funding moratorium. The agreements remain subject to the
adoption by the Federal Government of an Order-in-Council amending Air
Canada's pension funding rules and Air Canada entering into agreements to
raise a minimum of $600 million in new financing.

    Forward Looking Information

    Air Canada's public communications may include written or oral
forward-looking statements within the meaning of applicable securities laws.
Forward-looking statements, by their nature, are based on assumptions and are
subject to important risks and uncertainties. Any forecasts or forward-looking
predictions or statements cannot be relied upon due to, amongst other things,
changing external events and general uncertainties of the business. Actual
results may differ materially from results indicated in forward-looking
statements due to a number of factors, including without limitation, industry,
market, credit and economic conditions, the ability to reduce operating costs
and secure financing, pension issues, energy prices, currency exchange and
interest rates, employee and labour relations, competition, war, terrorist
acts, epidemic diseases, insurance issues and costs, changes in demand due to
the seasonal nature of the business, supply issues, changes in laws,
regulatory developments or proceedings, pending and future litigation and
actions by third parties as well as the factors identified throughout Air
Canada's public disclosure file available at www.sedar.com. The
forward-looking statements contained in this news release represent Air
Canada's expectations as of the date of this news release and are subject to
change after such date. However, Air Canada disclaims any intention or
obligation to update or revise any forward-looking statements whether as a
result of new information, future events or otherwise, except as required
under applicable securities regulations.
    %SEDAR: 00001324EF