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News Release

Canadian Transportation Agency Satisfied That Air Canada Will Meet Canadian Ownership and Control Requirements

OTTAWA - September 3, 2004 - The Canadian Transportation Agency today rendered a decision in which it concludes that Air Canada's proposed new corporate structure will meet the Canadian ownership and control requirements as defined in the Canada Transportation Act.

After a careful and comprehensive examination of all information and documentation filed in respect of the proposed new corporate structure of Air Canada, the Agency is satisfied that the new entity, ACE Aviation Holdings, will meet the Canadian ownership and control requirements as defined in subsection 55(1) of the Canada Transportation Act.

In order to satisfy itself that, upon emergence from the Companies' Creditors Arrangement Act proceedings, the proposed corporate and capital reorganizations have not changed in any material or substantial way from that described in the evidence presently on file, the Agency ordered ACE to file, upon signing, all the final closing documents, including final and signed agreements and other documentation implementing these proposals.

Mindful of the urgency of this matter, the Agency chose to issue this decision at this time with reasons to follow in the near future.

The Canadian Transportation Agency is an independent quasi-judicial tribunal that regulates various modes of transportation under Government of Canada jurisdiction, including air, marine and rail. Its procedures are governed by the rules of natural justice to ensure that all parties receive fair and equitable treatment.

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For further information, please contact:

Jadrino Huot
Senior Communications Adviser
(819) 953-9957

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