News
ACE’s participation in Air Canada credit facility

July 30, 2009, Montreal – ACE Aviation Holdings Inc. (ACE)
announced yesterday that its participation in the credit facility of up to $700
million announced earlier today by Air Canada represents $150 million.

ACE's
$150 million share is repayable in equal consecutive quarterly installments of
$7.5 million starting August 1, 2010, with a final payment of $30 million due by the fifth anniversary of the initial drawdown.
       
Air Canada's obligations under the credit agreement are secured by a security interest and   over substantially all of the present and after-acquired property of Air Canada and its subsidiaries.
       
The credit facility will provide stability to Air Canada in the current economic environment.
       
On December 10, 2008, ACE announced its intention to seek court and shareholder approvals for a plan of arrangement, pursuant to which it would proceed with a liquidation. On January 21, 2009, ACE announced that the special meeting of shareholders, initially scheduled for February 27, 2009, had been postponed to April 7, 2009. On March 2, 2009, ACE announced that it was continuing to engage with its shareholders and, in light of current market
conditions and stated opposition by certain shareholders to a liquidation at this time, it was appropriate to further postpone the special meeting of shareholders scheduled for April 7, 2009. ACE also announced that it continued to evaluate all of the alternatives available to it with a view to achieving an optimal outcome. Given ACE's participation in Air Canada's credit facility, it is unlikely that ACE will pursue a liquidation in the near term.