AIR CANADA AT A GLANCE

Air Canada is Canada’s largest full-service airline and the largest provider of scheduled passenger services in the Canadian market, the Canada-U.S. transborder market and in the international market to and from Canada. In 2007, Air Canada together with its regional affiliate Jazz, operated an average of 1,370 scheduled flights per day and carried over 33 million passengers, providing direct passenger service to over 170 destinations on 5 continents. Air Canada is a founding member of Star Alliance™, providing the world's most comprehensive air transportation network.

Air Canada's predecessor, Trans-Canada Air Lines (TCA) inaugurated its first flight on September 1, 1937. The 50-minute flight aboard a Lockheed L-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, with approximately 23,900 full-time equivalent employees. Air Canada shares are traded on the Toronto Stock Exchange (TSX) under the symbol “AC-B.TO”.

WHAT'S NEW

A la carte pricing
Air Canada’s redesigned website, aircanada.com, offers innovative à la carte pricing that allows customers on flights within Canada and to or from the United States to customize their travel experience by choosing the options they wish to pay for. A la carte pricing couples Air Canada’s branded fares with optional features, including lounge access, travel assistance, in-flight meal vouchers, checked baggage and Aeroplan miles. Customers build individualized tickets online, paying for perks where desired, and saving on unwanted services.

World-wide aircanada.com websites are available in 15 countries, and four languages, offering Air Canada products plus access to localized services in local currencies. In addition, Air Canada continues to expand its growing array of mobile services at http://mobile.aircanada.com, including mobile check in and mobile boarding passes.

Flight passes
Air Canada is the only airline that offers customers Flight Passes providing the convenience to self-manage travel online, either in the form of pre-purchased banks of one-way flight credits or fixed monthly subscription rates that provide for unlimited flights within chosen geographical zones.

New Fleet and On-Board Features
In 2007, Air Canada began introducing ultra-modern, fuel-efficient Boeing 777 jets on international routes, including the only non-stop service between Vancouver and Sydney, Australia. The carrier will have 18 by early 2009. In 2008, Air Canada will have concluded most of its major fleet-wide refurbishment, consisting of all new seats, seat-back personal entertainment systems with 80 hours of video and 50 hours of audio on demand, as well as standard 110V electrical outlets at arm’s reach for all customers. Concurrently, Air Canada is progressively introducing the first lie-flat beds of any North American carrier in business class across its international fleet. In 2008, Air Canada received its 60th and final new Embraer aircraft for its North American fleet, offering a consistent onboard product fleetwide.

Awards
Air Canada was ranked ‘Best Airline in North America’ in the world’s largest survey of air travelers conducted by the independent UK-based research firm Skytrax between August 2006 and June 2007. Air Transport World magazine awarded Air Canada the prestigious Airline Industry Achievement Award in 2007 for Market Leadership. Air Canada was voted ‘Best Airline in North America’ and ‘Best Airline in Canada’ by readers of the U.S. magazine, Global Traveler, and was voted ‘Best Business Class to Canada’ by readers of the U.S magazine, Business Traveler. EnRoute magazine received the award for Best Travel Magazine at the 2007 North American Travel Journalists’ Association Awards.

GLOBAL NETWORK

Air Canada has an extensive global network, with hubs in four major Canadian cities (Toronto, Montreal, Vancouver and Calgary), providing scheduled passenger jet service directly to 65 Canadian cities, 55 destinations in the United States and 54 cities in Europe, the Middle East, Asia, Australia, the Caribbean, Mexico and South America. Air Canada and its regional affiliate Jazz operate approximately 1,370 scheduled flights each day on average. Through its strategic and commercial arrangements with Star Alliance™ (www.staralliance.com), Air Canada offers service to 965 airports in 162 countries and provides top tier frequent flyer benefits.

A number of new non-stop services were launched in 2007, including Calgary-Seattle, Vancouver-Sacramento, Ottawa – Las Vegas, and Vancouver-Sydney, Australia. In 2008, Air Canada will launch, amongst other new routes, Calgary-Newark, Calgary-Chicago, Ottawa-Washington National, Ottawa-Frankfurt, Toronto–Madrid and Toronto-Austin non-stop service.

OTHER SERVICES

Air Canada’s specialty charter service, Air Canada Jetz, provides air travel and personalized service to professional sports teams, corporate incentive travellers and executive groups, offering a premium business service featuring all-business class seating comfort. Air Canada Vacations (www.aircanadavacations.com) is a leading Canadian tour operator offering a wide assortment of leisure travel package options including cruises, tours and excursions. All packages include accommodation, Aeroplan Miles and roundtrip airfare aboard Air Canada and its Star Alliance partners. Repeat recipient of the Consumer's Choice Award for Best Travel Wholesaler, Air Canada Vacations services over 100 destinations in the Caribbean, Central & South America, Asia, Europe, and the U.S. Air Canada Cargo (www.aircanadacargo.com) provides direct cargo service world wide. In addition to a freighter network extending to Asia and Europe, customers have a choice of various airport-to-airport services for everything from fresh flowers and fine art to seafood and seasonal produce.

ACE AVIATION HOLDINGS INC.

Montreal-based ACE Aviation Holdings, incorporated in 2004, is an investment holding company of various aviation interests including interests in Air Canada, Jazz, Aeroplan and ACTS.

Air Canada’s regional partner, Air Canada Jazz (www.flyjazz.ca), is one of North America’s largest regional airlines and an integral part of Air Canada’s North American network. Jazz operates select domestic and Canada-U.S. transborder flights for Air Canada under a capacity purchase agreement. Jazz has approximately 4,535 full-time equivalent employees.

Air Canada's frequent flyer program, Aeroplan (www.aeroplan.com), is Canada’s premier loyalty marketing program with approximately five million active members earning miles towards reward travel to destinations served by Air Canada, Jazz and other regional and worldwide partner airlines including Star Alliance carriers.

ACTS (www.acts.com) is one of the industry’s leading independent full-service maintenance, repair and overhaul (MRO) service providers to the airline industry. ACTS services customers from around the world and operates major maintenance centers in Canada and El Salvador with a workforce of approximately 5,000 employees. ACTS is headquartered in Montreal.

FLEET

As at December 31, 2007

SENIOR EXECUTIVES

KEY FINANCIAL & TRAFFIC DATA

Year ended December 31, 2007. Figures in Canadian dollars.

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