AIR CANADA ANNOUNCES NEW ROUTES FOR EASTERN CANADA PROVIDING DAILY SERVICE TO NEW YORK, TORONTO AND EDMONTON

MONTRÉAL, January 4, 2007 – Air Canada announced today that it is introducing non-stop service on three new routes for Atlantic Canada, connecting Halifax and New York City, Deer Lake, NL, and Toronto, and Halifax and Edmonton. The new daily flights will commence this spring.

“We are delighted to offer the convenience of these additional non-stop flights to travellers flying to and from Eastern Canada, including those who wish to connect with our expansive global network,” said Daniel Shurz, Vice President, Network Planning.  “The introduction of daily, year-round service April 1 between Halifax and LaGuardia will facilitate travel between the Atlantic provinces and the great destination of New York City. Starting May 4, Air Canada will further enhance service in western Newfoundland by offering the only daily non-stop service year-round between Deer Lake and Toronto. Finally, on June 15, Air Canada will begin seasonal daily service between Halifax and Edmonton, complementing our existing Halifax-Calgary service. The Edmonton service will operate until September 16.”

“Both business and leisure travellers on these routes will enjoy more and better connections, Aeroplan rewards, and an opportunity to use our growing suite of flight passes for convenience and savings.”

The Halifax-New York, LaGuardia service will be operated by Air Canada Jazz using a 50-seat Bombardier CRJ regional aircraft. Flights will depart Halifax at 11:45 a.m. and arrive in New York at 12:30 p.m. They will leave New York at 1 p.m. and arrive in Halifax at 3:40 p.m.

The Deer Lake-Toronto service will be operated by Air Canada using a 120-seat Airbus A319, featuring our Executive Class service. Flights will depart Toronto at 2:55 p.m. and arrive in Deer Lake at 7:05 p.m. They will leave Deer Lake at 7:55 p.m. and arrive in Toronto at 9:18 p.m. The new route will complement existing daily year-round service from Deer Lake to Montreal and Halifax.

The Halifax-Edmonton service will also be operated by Air Canada using an Airbus A319. Flights will depart Edmonton at 10:30 p.m. and arrive at Halifax at 6:10 a.m. They will leave Halifax at 8:10 a.m. and arrive at Edmonton at 10:30 a.m.

Montreal-based Air Canada provides scheduled and charter air transportation for passengers and cargo to more than 150 destinations on five continents.  Canada’s flag carrier is the 14th largest commercial airline in the world and serves 30 million customers annually with a fleet consisting of 332 aircraft.  Air Canada is a founding member of Star Alliance, providing the world’s most comprehensive air transportation network.

Contacts:          Isabelle Arthur (Montréal)                  (514) 422-5788
                            Peter Fitzpatrick (Toronto)                (416) 263-5576 
                            Angela Mah (Vancouver)                   (604) 270-5741

Internet:            aircanada.com