Overview - February 2006

Air Canada together with Air Canada Jazz and other business units of parent company ACE Aviation Holdings Inc. provide scheduled and charter air transportation for passengers and cargo to more than 150 destinations, vacation packages to over 90 destinations, as well as maintenance, ground handling and training services to other airlines.

Canada's flag carrier is recognized as a leader in the global air transportation market by pursuing a strategy based on value-added customer service, technical excellence and passenger safety.

In 2005, an independent survey by Skytrax of more than 12 million international air travelers ranked Air Canada as the Best Airline in North America. In a 2002 survey of the world's most frequent air travellers, conducted by travel information publisher OAG, Air Canada was voted best airline in North America for the second time in three years; Air Canada's frequent flyer program, Aeroplan, was voted best in the world for two consecutive years in 2002, and again in 2003 when the airline's website was also voted best in the world. Air Canada has been ranked as the world's safest airline in an independent analysis by air safety consultants of more than 500 airlines using ten management and environment criteria.

Air Canada's predecessor, Trans-Canada Air Lines (TCA) inaugurated its first flight on Sept. 1, 1937. The 50-minute flight aboard a Lockheed 10A carried two passengers and mail between Vancouver and Seattle. By 1964, TCA had grown to become Canada's national airline; it changed its name to Air Canada. The airline became fully privatized in 1989. In 2000, Air Canada acquired Canadian Airlines International. Today, Air Canada is the 14th largest commercial airline in the world.

CUSTOMER SERVICE HIGHLIGHTS

Executive First, Air Canada's international premium class service, offers first class comfort and sophistication at business class fares and is available on transatlantic, Latin America and transpacific routes. Air Canada's personalized Concierge service is available for Executive First and Aeroplan Super Elite customers at major Canadian, US and international airports.

Air Canada offers electronic ticketing and web check-in on most North American and international routes, and continues to expand convenient online services, simplified fare products, innovative multi-trip Flight Passes and self-service check-in kiosks.

Air Canada's Maple Leaf Lounges welcome Executive First and Executive Class ticket holders, Aeroplan Super Elite and Elite members, Star Alliance Gold and Air Canada Maple Leaf Club cardholders.

The 20 quiet, comfortable lounges offer a selection of newspapers and magazines as well as complimentary beverages. They are ideal for customers who want to work or relax before a flight.

Many of these lounges offer state-of-the art business centres. The HP Business Centres offer a complete range of leading-edge business equipment and computers, modern furnishings and high-speed Internet accessibility.

Air Canada's frequent flyer program, Aeroplan, a subsidiary of ACE Aviation Holdings Inc., is Canada's most popular. Over 5 million members earn miles toward reward travel to destinations served by Air Canada, its regional airlines and worldwide partner airlines.

Aeroplan miles earned on Star Alliance flights count toward achieving top-tier membership status. In addition, members earn miles through an extensive network of car rental companies, hotels, telephone companies and affinity credit card companies.

AIR CANADA'S NETWORK

Air Canada mainline provides scheduled and chartered passenger jet service directly to 20 Canadian cities, 35 destinations in the United States and 59 cities in Europe, the Middle East, Asia, Australia, the Caribbean, Mexico and South America.  Air Canada mainline operates on average 634 scheduled flights each day, and serves approximately 24 million scheduled and charter customers annually.

Air Canada's extensive global network, schedules and customer services are enhanced through its membership in the  Star Alliance™ network with Lufthansa, SAS, Thai Airways International, United Airlines, VARIG, Air New Zealand, All Nippon Airways, Austrian Airlines Group, Singapore Airlines, bmi british midland, Asiana Airlines, Spanair, LOT Polish Airlines, US Airways, and TAP Portugal. Together, Star Alliance carriers serve 795 airports in 139 countries.

AIR CANADA JAZZ

Air Canada's regional airline, Air Canada Jazz, a wholly-owned subsidiary of ACE Aviation Holdings Inc., and its commercial partners serve an additional 40 Canadian and 16 U.S. cities. The airline operates on average 585 flights per day and serves approximately 6.7 million customers annually.  This important regional airline plays a vital role in providing connecting traffic to the Air Canada network as well as meeting the needs of local customers.

AIR CANADA JETZ

Air Canada's specialty charter service, Air Canada Jetz, provides private air travel and personalized service to professional sports teams, corporate incentive travellers and executive groups with a fleet featuring all-business class seating comfort.

AIR CANADA VACATIONS

Celebrating 25 years of delivering dream holidays, this major Canadian tour operator is a wholly-owned subsidiary of ACE Aviation Holdings Inc., offering best-value sun, cruise and golf packages, excursions as well as South America and Asia tours.  Packages (including roundtrip airfare, hotel and airport transfers/ car rentals) are available to popular destinations in the Caribbean, Central & South America, Asia and U.S.A. Over 270,000 Canadians traveled with Air Canada Vacations in 2005.

CARGO NETWORK

Air Canada Cargo, a wholly-owned subsidiary of ACE Aviation Holdings Inc., provides direct cargo service to more than 150 destinations worldwide. In addition to a freighter network extending to Asia and Europe, customers have a choice of guaranteed (AC Expedair, AC Priority) and airfreight (AC Air Freight) airport-to-airport services. Air Canada Cargo also handles a variety of specialized product such as AC Live and AC Fresh. It is the largest supplier of air cargo services to Canada Post Corporation.

TECHNICAL SERVICES

Air Canada Technical Services, a wholly-owned subsidiary of ACE Aviation Holdings Inc., offers customers worldwide diverse range of technical expertise in the maintenance, repair and overhaul of aircraft, engines, components and various ground and test equipment. Air Canada Technical Services also sells ground-handling services to airlines and other customers, as well as training services for mechanics, flight attendants and pilots.

EMPLOYEES

As at December 31, 2005, Air Canada employed approximately 33,000 people worldwide including 3,800 at Air Canada Jazz.

FLEET

Air Canada and Air Canada Jazz fleets consist of 329 aircraft (as of Feb. 28, 2006).

Overview is produced by:
Corporate Communications
Air Canada Centre 1235,
P.O. Box 14,000, Dorval, Québec
CANADA H4Y 1H4  
Internet: aircanada.com