MONTREAL, Dec. 2 /CNW Telbec/ - Air Canada said today that it has matched the prevailing checked bag policy of international carriers on U.S. transborder and transatlantic routes. Customers purchasing Economy Class tickets (Tango, Tango Plus and Latitude fares) for travel on or after January 19, 2010 to/from the United States, Europe and Israel will be able to check one bag for free, in addition to permitted carry-on baggage, and will be charged for a second checked bag as follows:

- For flights to/from the United States (including Hawaii, excluding
      Puerto Rico): CAD/USD $30.
    - For flights to/from Europe and Israel: CAD/USD $50.

Air Canada's new policy on U.S. transborder routes compares favourably with major U.S. carriers that charge for checking in both a first and second bag.

Air Canada's checked baggage policy of two free checked bags for Economy Class ticket holders remains unchanged for all travel within Canada, as well as to/from Mexico, the Caribbean, South and Central America, Asia and Australia.

The fee for a second checked bag to/from the United States, Europe and Israel will not apply to Air Canada Prestige, Elite, Super Elite members or Star Alliance Silver and Gold members. Executive Class and Executive First customers continue to receive an allowance of three checked bags on all flights, regardless of destination.

"This change in baggage policy to match our U.S. and European competitors is an important step as we work toward sustained profitability," said Ben Smith, Executive Vice President and Chief Commercial Officer. "In this weak economy it is more critical than ever to continue reviewing all our activities on a regular basis and making adjustments as necessary to remain competitive with our industry peers. We are committed to offering our customers a full range of competitively priced travel options."

Changes to Air Canada's checked baggage policy come into effect for tickets purchased beginning December 2, 2009 for travel on or after January 19, 2010 to/from the United States, Europe and Israel. Complete details on Air Canada's baggage policy are available at aircanada.com/baggage.

Air Canada provides scheduled and charter air transportation for passengers and cargo to more than 170 destinations on five continents. Canada's flag carrier is the 13th largest commercial airline in the world and serves 33 million customers annually. Air Canada is a founding member of Star Alliance, providing the world's most comprehensive air transportation network.