ACE AVIATION COMPLETES SECONDARY OFFERING OF SHARES OF AIR CANADA

Not for distribution to U.S. news wire services or dissemination in the United States.

MONTREAL, Dec. 23 /CNW Telbec/ - ACE Aviation Holdings Inc. (ACE) announced today that it has completed the previously announced bought deal secondary offering of 44,000,000 shares of Air Canada led by Canaccord Genuity Corp., RBC Dominion Securities Inc. and TD Securities Inc. ACE received net proceeds of approximately $156,288,000 in connection with the offering.

ACE now beneficially owns 31,000,000 Class B Voting Shares of Air Canada, representing 11.11% of the Class A Variable Voting Shares and the Class B Voting Shares of Air Canada issued and outstanding on a combined basis. ACE holds an aggregate of 2,500,000 warrants, each entitling ACE to purchase one Class B Voting Share of Air Canada at an exercise price of $1.44 (1,250,000 warrants) and $1.51 (1,250,000 warrants) per share.

The securities offered have not been registered under the U.S. Securities Act of 1933, as amended, and may not be offered or sold in the United States absent registration or an applicable exemption from the registration requirements. This press release shall not constitute an offer to sell or the solicitation of an offer to buy nor shall there be any sale of the securities in any State in which such offer, solicitation or sale would be unlawful.

CAUTION REGARDING FORWARD-LOOKING INFORMATION

Certain statements in this news release may contain forward-looking statements. These forward-looking statements are identified by the use of terms and phrases such as "anticipate", "believe", "could", "estimate", "expect", "intend", "may", "plan", "predict", "project", "will", "would", and similar terms and phrases, including references to assumptions. Such statements may involve but are not limited to comments with respect to strategies, expectations, planned operations or future actions. 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.  Such statements involve known and unknown risks, uncertainties and other factors that may cause the actual results, performance or achievements to differ materially from those expressed in the forward-looking statements.  Results indicated in forward-looking statements may differ materially from actual results for a number of reasons, including without limitation, energy prices, general industry, market, credit and economic conditions, war, terrorist acts, changes in demand due to the seasonal nature of the business, the ability to reduce operating costs and employee counts, employee relations, labour negotiations or disputes, pension issues, currency exchange and interest rates, changes in laws, adverse regulatory developments or proceedings, pending and future litigation and actions by third parties as well as the factors identified throughout ACE's filings with securities regulators in Canada and, in particular, those identified in the Risk Factors section of ACE's 2009 MD&A dated February 11, 2010 as updated in the Risk Factors section of ACE's MD&A for Quarter 3, 2010 dated November 4, 2010.  The forward-looking statements contained herein represent ACE's expectations as of the date they are made and are subject to change after such date.  However, ACE 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:

Contact:	Des Beaumont  [phone]
Internet:	www.aceaviation.com