MONTREAL, July 13 /CNW Telbec/ - Air Canada provided the following
comment today in response to receiving confirmation from two more of its
unions that their members have ratified their tentative agreements on labour
stability and pension funding relief. Yesterday, CUPE, representing 6,700
flights attendants, and today ACPA, representing 3,200 pilots, advised Air
Canada that their members had ratified their agreements. The CAW and CALDA
contracts have been ratified and the ratification process is ongoing with the
IAMAW with a vote scheduled for July 14, 2009.
    "The ratifications by ACPA and CUPE members, following earlier
ratifications by CAW and CALDA, are encouraging steps forward and underscore
these employees' desire to work with the company to create a stronger
business," said Calin Rovinescu, President and CEO of Air Canada. "We continue
to work diligently towards obtaining the necessary governmental approvals for
the pension funding arrangement and securing new financing."
    The Company has concluded tentative agreements on a cost neutral basis
for collective agreement extensions for a period of 21 months with its entire
unionized workforce in Canada, in addition to a pension funding moratorium.
The terms of the labour contract extension agreement specify that there shall
be no changes to wage rates and pension benefit levels during the extension
period.
    In addition to ratification by the membership of the IAMAW, 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
raising a minimum of $600 million in new financing. The pension funding
agreements are also subject to the support of the company's non-unionized
employees and retirees. A consultation process with these groups is currently
under way and is expected to be concluded by July 18, 2009.

    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