MONTREAL, May 4 /CNW Telbec/ - Air Canada said today that the Company is
in ongoing discussions with its Canadian-based unions to find a funding
solution which would allow the airline to maintain its defined benefit pension
plans.
    The discussions have focused on seeking support from its unions for a
moratorium and other conditions on funding its pension deficit so as to
establish financial certainty over the next several years.
    The Company stated in its discussions with the unions that its objective
is to maintain its current defined benefit plans without restructuring the
pension benefit formula. The Company's proposal does not contemplate a
transition of its plans to a defined contribution plan design.
    There can be no assurance that an agreement will be reached between the
company and the unions on this matter.

    CAUTION REGARDING 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.