MONTREAL, June 4 /CNW Telbec/ - Air Canada provided the following comment
in response to today's appointment by the federal government of the Honourable
James Farley, Q.C., as mediator in talks between Air Canada, its unions and
its retiree associations to find a pension funding solution:
    "As I have stated on numerous occasions over the past two months, our
number one priority and focus of our efforts is to work towards an alternative
pension funding solution," said Calin Rovinescu, President and Chief Executive
Officer. "With the appointment today of the Honourable James Farley, we are
hopeful of a rapid resolution of the pension funding issue as well as
achieving labour stability, both of which are pre-conditions required to help
the company obtain the financing needed to address the company's liquidity
constraints. Justice Farley has extensive experience in corporate
restructurings and labour negotiations, and we expect that he will make a
useful contribution to the resolution of our pension issues in a timely
fashion."

    Air Canada's pension plan is subject to federal regulation under the
Pension Benefits Standards Act, 1985.

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Forward-looking statements, by their nature, are based on assumptions and are
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