ACE Aviation holdings Inc. completes monetization of ACTS

    Unless noted otherwise, all figures referred to in this press release are
    in Canadian dollars.

    MONTREAL, Oct. 16 /CNW Telbec/ - ACE Aviation Holdings Inc. (ACE)
announced today that it has completed the sale of a 70% interest in its wholly
owned maintenance, repair and overhaul subsidiary, ACTS LP (ACTS), announced
on June 22, 2007.
    On closing, ACE received net cash proceeds of $723 million. Within
6 months of closing, ACE may receive up to an additional $40 million in cash
proceeds, from funds held in escrow, conditional upon the completion of
certain supplier contracts within specified terms.
    Following the redemption of the exchangeable share issued to a party
related to Grupo Taca and the establishment of an initial ACTS LTIP, ACE holds
a 23% equity interest in the new ACTS with a value of $83 million.
    The transaction was reviewed and approved by the Minister of Industry
under the Investment Canada Act, who concluded that the transaction is likely
to be of net benefit to Canada.

    About ACE Aviation Holdings

    ACE is a holding company of various aviation interests including Air
Canada, Aeroplan Income Fund, Jazz Air Income Fund and ACTS.

                             Transaction Summary

                                                             CAD$ Millions

    Total enterprise value                                             975
    Closing costs and other adjustments                                (18)
    Net transaction proceeds                                           957

    Net cash proceeds to ACE(1)                                        723
    Equity in new ACTS held by ACE (23%)                                83
    Funds held in escrow pending completion
     of supplier contracts                                              40
    Payment of amounts due to Air Canada(2)                             55
    Redemption of exchangeable share in ACTS(3)                         49
    Initial ACTS long term incentive plan (LTIP) (2%)                    7

    (1) This amount includes the settlement of the $200 million intercompany
        note payable by ACTS to ACE.

    (2) Consists of $28 million for the purchase of a building, $17 million
        to pay an intercompany note payable by ACTS to Air Canada and payment
        of other obligations in the amount of $10 million. Air Canada
        received an additional $10 million from the purchaser.

    (3) $49 million (US$50.5 million) redemption obligation satisfied with an
        equity stake of $18 million (5%) in the new ACTS and a cash payment
        of $31 million.


    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, general uncertainties of the
business and matters that are not within the control of ACE. 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. 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.
    %SEDAR: 00020954EF          %CIK: 0001295721

For further information:

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

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