Air Canada concludes additional financing for US$37 million with Norddeutsche Landesbank Girozentrale; Completes financing with GE Capital Corporation for US$75 million

    MONTREAL, Jan. 30 /CNW Telbec/ - Air Canada today announced that it has
concluded a secured financing transaction valued at US$37 million
(approximately C$46 million) with Norddeutsche Landesbank Girozentrale. This
transaction increases a previously announced facility for US$78 million with
Calyon New York Branch and Norddeutsche Landesbank Girozentrale announced
December 22, 2008, providing for a five-year loan that matures in December

    Completes Second Tranche of Financing with GE Capital Corporation

    In addition, Air Canada today announced that it has concluded a secured
financing transaction valued at US$75 million (C$92 million) that completes
the second tranche of a series of agreements for secured financings with
General Electric Capital Corporation (GECC) and its affiliates announced
December 23, 2008.
    Under these agreements, US$80 million (approximately C$98 million) was
funded December 23, 2008 as the first of two tranches of the loan agreement
which, with the funding of the second tranche of US$75 million today, has
provided Air Canada with US$155 million (approximately C$190 million). The
loan matures in 2014.
    The conclusion of the sale leaseback of one Boeing 777-300ER aircraft
with GE Commercial Aviation Services (GECAS), a division of GECC, has been
deferred and is expected to be concluded in February 2009 but is no longer a
condition to funding of the second tranche. This 12 year sale leaseback
transaction, which remains subject to certain conditions, would provide Air
Canada with at least US$40 million (approximately C$48 million) of additional
    Full funding under all the agreements with GECC and its affiliates would
provide Air Canada with financing of approximately US$195 million
(approximately C$238 million).
    Seabury Group LLC acted as financial advisor to Air Canada with respect
to the GE Capital transaction as part of a broader mandate to assist Air
Canada in securing long-term capital funds for general working capital
    These agreements represent additional steps in the implementation of Air
Canada's strategy of improving its short term and longer term liquidity
through both traditional and non-traditional means.

    Financing Agreements Concluded in December 2008 and January 2009

    In the months of December and January, Air Canada concluded financing
arrangements providing funding of up to C$549 million. In addition to the
financings disclosed above, Air Canada concluded financings consisting of: a
secured revolving credit facility of up to C$100 million with the Canadian
Imperial Bank of Commerce (CIBC) with draw downs being subject to certain
conditions; and an agreement with Aeroplan under which it accelerated
approximately C$70 million in payments to Air Canada to December 31, 2008 as
well as provided commercial terms that are beneficial to both parties.


    This disclosure may include forward-looking statements within the meaning
of applicable securities laws. Forward-looking statements are based on
assumptions, are subject to important risks and uncertainties and cannot be
relied upon due to, amongst other things, changing external factors and
general uncertainties of the business. Results indicated in forward-looking
statements may differ materially from actual results due to a number of
factors, including without limitation, energy prices, general industry,
market, credit and economic conditions, currency exchange and interest rates,
competition, war, terrorist acts, epidemic diseases, insurance issues and
costs, changes in demand due to the seasonal nature of the business, the
ability to reduce operating costs, employee and labour relations, pension
issues, supply issues, changes in laws, regulatory developments or
proceedings, pending and future litigation and actions by third parties, as
well as the factors (including assumptions) identified in Air Canada's public
disclosure file and accessible through SEDAR at Any
forward-looking statements contained in this disclosure represent Air Canada's
expectations as of the date of this disclosure and are subject to change after
such date. 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
    %SEDAR: 00001324EF

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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