MONTREAL, July 10 /CNW Telbec/ - Air Canada welcomed today's decision by
the U.S. Department of Transportation (DOT) to approve the formation of a
transatlantic alliance between Air Canada, Continental Airlines, Lufthansa and
United Airlines. In its decision, the DOT granted antitrust immunity to the
four carriers that allows them to develop an integrated joint venture and
strengthen their transatlantic network, creating substantial new service
options and fare benefits for customers.
    "We welcome the DOT's final approval today that facilitates Air Canada
moving forward with the formation of a transatlantic alliance with our
partners Continental, Lufthansa and United," said Ben Smith, Air Canada's
Executive Vice President and Chief Commercial Officer. "Transatlantic travel
represents the world's largest international air transportation market.
Obtaining antitrust immunity is a critical step in allowing us to cooperate
more fully in order to offer our customers more value, choice and simplicity
when making their transatlantic travel plans. Working with our partners, Air
Canada's presence in this important market will be enhanced and our
competitive position will be strengthened with improved access to an extended
global network when the transatlantic alliance is implemented. Air Canada
customers will benefit from more options between Canada and Europe, Africa,
the Middle East, India, the Commonwealth of Independent States (CIS) and
western Russia."
    Air Canada will continue to cooperate with regulatory authorities in
other jurisdictions as required to ensure compliance of the transatlantic
alliance arrangements, as the carrier and its partners prepare to move forward
as an integrated joint venture in the months to come.

    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