AIR LINE PILOTS ASSOCIATION, INTERNATIONAL

HALIFAX, November 23, 2001 –Air Canada’s regional carrier, operating as AirBC, Air Nova, Air Ontario and Canadian Regional, and the Air Line Pilots Association, International, jointly announced today that they have reached a tentative labour agreement with its pilots. The agreement is subject to the approval of the pilots’ governing bodies and ratification by the 1500 Air Canada Regional pilots, who are represented by ALPA.

The requirement for a new collective agreement arose out of the decision to consolidate Air Canada’s four regional airlines into a single entity in February 2000. The tentative agreement is the culmination of almost a year of collective bargaining and was assisted in its final phase by Federal Mediator, Elizabeth MacPherson.

Working with the assistance of Elizabeth MacPherson, Director General, Federal Mediation, the parties were successful in reaching a labour agreement in one of the most challenging periods in aviation history. The labour agreement provides a basis for strong and secure regional airline services in Canada and to the United States.

"This agreement with our pilots enables us to continue to operate regional jets and to provide service to our customers with the economics we need," said Joseph Randell, President of Air Canada Regional. "The details of the schedule and fleet configuration will be determined in the coming weeks. It is clear our pilots share our vision for the future. Having overcome one of the greatest challenges associated with the consolidation of the four regional carriers, we now have the clarity to move forward."

Captain Steve Linthwaite, chairman of the Air Canada Regional pilots unit of ALPA, noted that in addition to the difficulties entailed in merging the four separate labour agreements, the negotiations took place during one of the most challenging periods in aviation history. Captain Linthwaite stated, "In a time when airlines are regressing, we are pleased to see that Air Canada Regional is embracing a proactive approach to provide the highest level of customer service to the communities we serve. After a complex set of intensive negotiations, ALPA was successful in obtaining an agreement that will provide our pilots with a solid foundation to take a positive step forward."

The schedule and commercial details will be determined following the ratification of the collective agreement. Air Canada Regional employs 1500 pilots and provides over 700 daily flights across Canada and the United States.

Founded in 1931, ALPA is the world’s oldest and largest pilots union, representing 67,000 flight deck crewmembers at 47 airlines in Canada and the U.S.

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Air Canada Regional Contacts:

Dennis Erickson (Calgary, AB) (403) 974-7738
Debra Williams (London, ON) (519) 659-5696
Sylvie Beaudoin (Quebec City, QUE) (418) 877-7607
Robert Moffat (Halifax, NS) (902) 873-5937

ALPA Contact:  Stacy Platone  (703) 481-4440