/R E P E A T -- Air Canada Receives Strike Notice from the IAMAW to Take Effect March 12/

MONTREAL, March 7, 2012 /PRNewswire/ - Air Canada has been advised by the International Association of Machinists and Aerospace Workers (IAMAW), representing the airline's approximately 8,600 mechanics, baggage handlers and cargo agents in Canada, that it intends to begin labour action starting at 12:01 A.M. ET on Monday March 12, 2012.

"We recognize that the IAMAW's notice of strike action in the midst of the peak March Break travel period will cause uncertainty for thousands of our customers. The lines of communication remain open and we are hopeful that there remains sufficient time to avoid a work disruption," said Duncan Dee, Air Canada's Executive Vice President and Chief Operating Officer. "We regret the uncertainty for our customers and we thank them for their patience and understanding.  This threatened job action follows the disappointing rejection of the unanimously recommended tentative agreement signed by the IAMAW bargaining committee following the federal mediation before the Honourable Madam Justice Louise Otis. "

Should a settlement not be reached and the IAMAW commences job action, the airline will endeavour to minimize inconvenience to its customers.

In the meantime, Air Canada continues to operate its normal schedule without disruption.

However, due to the expected high volume of calls at our call centres, wait times will be long. To avoid waiting, Air Canada strongly recommends customers consult its website, aircanada.com, which will continue to be updated with the latest information for customers.  In addition, aircanada.com offers self-service tools that can be used for making bookings, checking-in for flights and rebooking flights in case a flight is delayed or cancelled for reasons such as bad weather.

The airline will provide further updates as developments warrant.

Air Canada is Canada's largest domestic and international airline serving more than 180 destinations on five continents.  Canada's flag carrier is the 15th largest commercial airline in the world and in 2011 served more than 33 million customers. Air Canada provides scheduled passenger service directly to 60 Canadian cities, 57 destinations in the United States and 63 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 1,290 destinations in 189 countries. In 2011, Air Canada was ranked Best International Airline in North America in a worldwide survey of more than 18 million airline passengers conducted by independent research firm Skytrax.

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SOURCE AIR CANADA