Air Canada comments on appointment of federal mediator in pension talks



    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.

    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.




For further information:

For further information: Isabelle Arthur (Montréal), (514) 422-5788;
Peter Fitzpatrick (Toronto), (416) 263-5576; Angela Mah (Vancouver), (604)
270-5741; Internet: aircanada.com


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