Jazz Air LP provides information on its cash position

    HALIFAX, Aug. 31 /CNW/ - Jazz Air LP (Air Canada Jazz) confirms that it
has become a signatory to the "Interim Agreement" as proposed by a group of
financial institutions that met in Montreal on August 16, 2007 to work out a
solution to the liquidity problem affecting the third party structured finance
asset-backed commercial paper (ABCP) market in Canada. Jazz Air LP maintains a
strong cash position of approximately $146 million CAD as of August 31, 2007.
This amount includes approximately $5.5 million USD in ABCP. Air Canada Jazz
does not foresee any material adverse change to it resulting from the current
liquidity situation regarding ABCP.

    About Air Canada Jazz

    Air Canada Jazz is the second largest airline in Canada based on fleet
size and the number of routes operated. Air Canada Jazz operates more flights
and flies to more Canadian destinations than any other Canadian carrier. Air
Canada Jazz forms an integral part of Air Canada's domestic and transborder
market presence and strategy. Air Canada Jazz is owned by Jazz Air Income Fund
    Air Canada Jazz is not a typical airline. The airline has a commercial
agreement with Air Canada that is the core of its business. Under the Capacity
Purchase Agreement (CPA), Air Canada currently purchases substantially all of
Air Canada Jazz's fleet capacity based on predetermined rates. The CPA
provides commercial flexibility, low trip costs and connecting network traffic
to Air Canada. Also, the CPA significantly reduces Air Canada Jazz's financial
and business risks, and provides a stable foundation for day-to-day operations
and future growth.

For further information:

For further information: Media: Manon Stuart, (902) 873-5054, Halifax,
Nova Scotia; www.flyjazz.ca

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