April 1, 2003
Cargo customer letter from Robert Milton on the restructuring
Dear Valued Air Canada Cargo Customer:
Recognizing the importance of our relationship with you, I want to inform you about an important step Air Canada has taken to restructure into a more efficient, low cost airline. Today, Air Canada has filed for protection under the Companies Creditors Arrangement Act (CCAA), legislation that facilitates our financial restructuring while we continue normal operations. Air Canada (including Tango and Air Canada Jetz), Air Canada Jazz and ZIP are covered by this filing; Aeroplan, Air Canada Vacations and Destina.ca are excluded.
Because you are vital to our success, I want to assure you that our financial restructuring will not affect our relationship with you. We assure you that you can continue to place your full confidence in Air Canada, as we will continue to meet our commitment to provide our customers with outstanding service and safe operations.
It is business as usual at Air Canada Cargo. The CCAA filing simply enables Air Canada to make the changes necessary to restructure into a more efficient, low cost airline while continuing to meet our customers' needs.
- Air Canada Cargo continues to provide its customers with its full range of cargo products.
- All Air Canada, Air Canada Jazz, Tango, ZIP, Air Canada Jetz and Air Canada Vacations flights continue to operate as usual.
- Every air waybill will be processed normally and carriage will be made in accordance with current Air Canada Cargo policies. Interline and reciprocal agreements with other carriers, including affiliates, Star Alliance partners and other codeshare partners remain fully intact and will continue without interruption.
Attached, for your benefit and to provide additional background, is the news release we issued today. It includes further information on our filing including our financing going forward, which will provide us with adequate resources to buy goods and services and fulfill all obligations to employees, retirees, customers and suppliers while we restructure. Also included is a letter to our airline customers and a document with frequently asked questions and suggested answers that we encourage you to send to the appropriate individuals throughout your organization. Further information may also be found on our website at www.aircanada.ca.
As a colleague in operating a business, you may appreciate that we did not come to this decision easily. The last two years and recent world events have presented the entire travel industry with unprecedented challenges. We have worked hard and made significant progress in reducing costs, increasing revenues and reinventing Air Canada to meet a changing marketplace. With the measures available to us through a CCAA court-supervised reorganization, we will continue to make the necessary changes to ensure our financial strength going forward.
Air Canada will emerge from CCAA a stronger, leaner, more financially competitive company that continues to rank among the world's premier airlines for service and operational excellence.
In closing, and on behalf of Air Canada's employees worldwide, thank you for your continued support as we take the necessary steps to change the way we do business. We look forward to building our relationship and to partnering with you in future success.
President and Chief Executive Officer