News
Air Canada concludes additional financing

Jan. 30, 2009, Montreal – Air Canada today announced that it has
concluded a secured financing transaction valued at US$37 million
(approximately C$46 million) with Norddeutsche Landesbank Girozentrale. This
transaction increases a previously announced facility for US$78 million with
Calyon New York Branch and Norddeutsche Landesbank Girozentrale announced
December 22, 2008, providing for a five-year loan that matures in December
2013.

Completes Second Tranche of Financing with GE Capital Corporation

In addition, Air Canada today announced that it has concluded a secured
financing transaction valued at US$75 million (C$92 million) that completes
the second tranche of a series of agreements for secured financings with
General Electric Capital Corporation (GECC) and its affiliates announced
December 23, 2008.
    
Under these agreements, US$80 million (approximately C$98 million) wa
funded December 23, 2008 as the first of two tranches of the loan agreement
which, with the funding of the second tranche of US$75 million today, has
provided Air Canada with US$155 million (approximately C$190 million). The
loan matures in 2014.

The conclusion of the sale leaseback of one Boeing 777-300ER aircraft
with GE Commercial Aviation Services (GECAS), a division of GECC, has been
deferred and is expected to be concluded in February 2009 but is no longer a
condition to funding of the second tranche. This 12 year sale leaseback
transaction, which remains subject to certain conditions, would provide Air
Canada with at least US$40 million (approximately C$48 million) of additional
financing.

Full funding under all the agreements with GECC and its affiliates would
provide Air Canada with financing of approximately US$195 million
(approximately C$238 million).
    
Seabury Group LLC acted as financial advisor to Air Canada with respect
to the GE Capital transaction as part of a broader mandate to assist Air
Canada in securing long-term capital funds for general working capital
purposes.

These agreements represent additional steps in the implementation of Air
Canada's strategy of improving its short term and longer term liquidity
through both traditional and non-traditional means.

Financing Agreements Concluded in December 2008 and January 2009

In the months of December and January, Air Canada concluded financing
arrangements providing funding of up to C$549 million. In addition to the
financings disclosed above, Air Canada concluded financings consisting of: a
secured revolving credit facility of up to C$100 million with the Canadian
Imperial Bank of Commerce (CIBC) with draw downs being subject to certain
conditions; and an agreement with Aeroplan under which it accelerated
approximately C$70 million in payments to Air Canada to December 31, 2008 as
well as provided commercial terms that are beneficial to both parties.