Agreements on labour stability now concluded with all five of the
    airline's Canadian-based unions

    MONTREAL, June 22 /CNW Telbec/ - Air Canada said today that it has
reached agreement on a collective agreement extension with CUPE that
represents the airline's approximately 6,700 flight attendants. The contract
extension agreement, together with the pension moratorium agreement reached
June 15th with CUPE, are subject to membership ratification.
    "I thank the Honourable James Farley and Mr. Jacques Lessard for their
important contribution in facilitating the conclusion of the last remaining
labour agreement well within an extraordinarily tight timeframe," said Calin
Rovinescu, President and Chief Executive Officer of Air Canada.
    "Given the current economic context and the financial crisis facing the
airline industry, I especially commend the management and union negotiating
teams for their hard work and outstanding commitment. These tentative
agreements will allow us to move forward to the next milestones: obtaining the
necessary governmental measures and approvals for the pension funding
arrangement and raising new financing. Discussions are ongoing with several
potential lenders."
    The airline has now concluded agreements on a cost neutral basis for
collective agreement extensions with its entire unionized workforce in Canada,
in addition to having reached tentative agreements on a pension funding
moratorium. The terms of the labour contract extension agreements of all five
unions specify that there shall be no changes to wage rates and pension
benefit levels during the extension period of 21 months.
    The CAW became the first union to ratify its contract on June 18, 2009.
The ratification process is ongoing with the other labour groups.
    Separately, Air Canada confirmed that the condition of the Memorandum of
Understanding with one of its principal credit card processors requiring
finalizing amendments by June 15, 2009 was met by the deadline of June 15,
2009 such that its terms remain in effect.

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Forward-looking statements, by their nature, are based on assumptions and are
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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
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result of new information, future events or otherwise, except as required
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