An anonymous director reports

AIR CANADA WELCOMES LANDMARK AGREEMENT WITH ITS PILOTS

The Air Canada Pilots Association has confirmed that its members have ratified a landmark agreement with Air Canada on collective agreement terms for 10 years.

"This 10-year agreement with the Air Canada Pilots Association is a ground-breaking development which allows us to accelerate the implementation of our business strategy on a win-win basis with our pilots," said Calin Rovinescu, president and chief executive officer of Air Canada. "The new agreement provides greater stability and long-term cost certainty as well as a framework for a strong partnership with our pilots. It is also the most tangible indication of the shift in culture under way at Air Canada.

"With this agreement now in place, we can focus our efforts on long-term profitable growth at both Air Canada and rouge for the benefit of our employees and all of Air Canada's stakeholders. I thank the teams representing both ACPA and management for their insight, commitment and determination in reaching this agreement."

The agreement is subject to certain openers and benchmarks over the 10-year period.

In addition to labour stability and long-term cost certainty, the agreement also provides for increased flexibility with respect to regional airline capacity purchase agreements to help ensure cost competitiveness. In addition, it facilitates the evolution of Air Canada rouge into a stronger leisure carrier with improved fleet renewal flexibility and terms. As well, the agreement provides additional codeshare and joint venture flexibility and scope.

The agreement has been approved by the Air Canada board of directors.

The Air Canada Pilots Association membership comprises approximately 3,000 pilots.

We seek Safe Harbor.