Air Canada comments on appointment of mediators in CUPE labour stability negotiations

    MONTREAL, June 17 /CNW Telbec/ - Air Canada provided the following
comment in response to Federal Labour Minister Rona Ambrose's appointment of
the Honourable James Farley, Q.C and Mr. Jacques Lessard as mediators in its
labour stability negotiations with CUPE:
    "We welcome the appointment of Messrs. Farley and Lessard as mediators in
our labour contract negotiations with CUPE," said Calin Rovinescu, President
and CEO of Air Canada. "Mr. Farley has made an important contribution in
facilitating agreements with our four other unions and we look forward to
working with him and Mr. Lessard in their role as mediators. Time is of the
essence as a successful outcome to negotiations with CUPE is needed in the
very near term to allow us to move forward on obtaining the necessary
governmental approvals for the pension funding arrangement and raising new
    Air Canada has thus far failed to reach agreement with CUPE, representing
approximately 6,700 flight attendants on a collective agreement extension
which it has been negotiating on a similar cost neutral basis to agreements
reached with its four other Canadian-based unions.
    CUPE yesterday declined Air Canada's final cost neutral offer, as well as
other non-concessionary options proposed by Mr. Farley who was appointed by
the Minister of Finance on June 4, 2009 to facilitate the negotiation of
pension and labour stability agreements at Air Canada.
    The Company has reached a pension moratorium agreement with each of its
Canadian based unions and collective agreement extensions on a cost neutral
basis for a period of 21 months with ACPA, the IAMAW, the CAW Local 2002 and
    The pension agreements agreed to by the five unions remain conditional
upon Air Canada and CUPE concluding a collective agreement extension.

    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 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:

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