Air Canada Selects Air Georgian to Operate Additional Regional Routes under RFP Process

MONTREAL, Dec. 10, 2013 /CNW Telbec/ - Following a previously announced Request for Proposals (RFP), Air Canada today announced that it has signed an MOU to expand its relationship and amend its capacity purchase agreement (CPA) with Air Georgian. Air Georgian has been selected to operate a number of additional regional routes including transborder routes in mid-2014 using Canadair Regional Jet aircraft.

"We are pleased to expand our longstanding commercial relationship with Air Georgian that will allow Air Canada to introduce more cost-competitive operations in a number of our key regional markets," said Kevin Howlett, Air Canada's Senior Vice President, Regional Markets. "The competitive bid process generated a significant level of response from a number of Canadian and U.S. regional operators. Following a thorough evaluation of proposals received, Air Georgian was selected on the basis of a broad range of criteria including operational safety, efficiency, cost and service. The award of additional flying to Air Georgian is an important step in our regional airline diversification strategy and ongoing cost transformation program."

"We are excited with this opportunity to expand Air Georgian's presence as an Air Canada Express regional operator beginning in 2014," said Eric Edmondson, President of Air Georgian. "The selection of Air Georgian for this expanded role is based on our proven ability to offer seamless connections and service for Air Canada customers that is of mutual benefit for both airlines. We look forward to continuing to expand our relationship, building on our solid partnership with Air Canada that has developed over the past 13 years."

The implementation of the amendment to the CPA remains subject to the parties making any necessary filings, obtaining regulatory approvals and finalizing documentation.

Air Canada currently has capacity purchase agreements with four regional airline partners that operate under the banner Air Canada Express: Jazz, Sky Regional, Air Georgian and EVAS.

Air Georgian became a Tier III partner of Air Canada in 2000, operating as Air Alliance under a CPA. Today Air Georgian operates under the brand Air Canada Express, focusing on transborder and domestic airline operations carrying over 350,000 passengers per year for Air Canada from Toronto's Pearson International Airport, Montreal's Pierre Elliott Trudeau International Airport, Halifax's Robert L. Stanfield International Airport and Calgary's International Airport to 19 Canadian and U.S. destinations.

Air Georgian has been providing aviation services and charter flight solutions for more than 25 years. Air Georgian also operates and/or maintains a fleet of corporate jets from its base in Toronto. Air Georgian is an IATA registered airline and recently achieved the coveted ARGUS Platinum Audit Rating along with IS-BAO Stage 1 registration.

Air Canada is Canada's largest domestic and international airline serving more than 175 destinations on five continents.  Canada's flag carrier is among the 20 largest airlines in the world and in 2012 served close to 35 million customers.  Air Canada provides scheduled passenger service directly to 60 Canadian cities, 49 destinations in the United States and 67 cities in Europe, the Middle East, Asia, Australia, the Caribbean, Mexico and South America. Air Canada is a founding member of Star Alliance, the world's most comprehensive air transportation network serving 1,328 destinations in 195 countries.  Air Canada is the only international network carrier in North America to receive a Four-Star ranking according to independent U.K. research firm Skytrax that ranked Air Canada in a worldwide survey of more than 18 million airline passengers as Best Airline in North America in 2013 for the fourth consecutive year.  For more information, please visit: www.aircanada.com.

Caution Regarding Forward-Looking Information

Air Canada's public communications may include forward-looking statements within the meaning of applicable securities laws. Forward-looking statements, by their nature, are based on assumptions and are subject to important risks and uncertainties.  Forward-looking statements cannot be relied upon due to, amongst other things, changing external events and general uncertainties of the business and the capital markets.  Actual results may differ materially from results indicated in forward-looking statements due to a number of factors, including without limitation, industry, market, credit and economic conditions, the ability to reduce operating costs and secure financing, pension issues, energy prices, employee and labour relations, currency exchange and interest rates, competition, war, terrorist acts, epidemic diseases, environmental factors (including weather systems and other natural phenomena, and factors arising from man-made sources), insurance issues and costs, changes in demand due to the seasonal nature of the business, supply issues, changes in laws, regulatory developments or proceedings, pending and future litigation and actions by third parties as well as the factors identified throughout Air Canada's public disclosure file available at www.sedar.com.  Any forward-looking statements contained in this news release represent Air Canada's expectations as of the date of this news release, and are subject to change after such date.  However, Air Canada disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as required under applicable securities regulations.

SOURCE Air Canada



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