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Air Canada responds to Porter Airlines allegations

    MONTREAL, Oct. 26 /CNW Telbec/ - Air Canada issued the following
statement in response to being named by Porter Airlines as a party in its
court action filed in the Ontario Superior Court of Justice today. The action
consists of a counterclaim by Porter Airlines to Jazz Air's lawsuit against
the Toronto Port Authority and Porter Airlines.
    Porter Airlines' counterclaim is frivolous, without merit and it will be
vigorously contested.
    It should be noted that the relationship between Air Canada and Jazz Air
is similar to that in place between other mainline and regional carriers in
North America.
    The Capacity Purchase Agreement between Air Canada and Jazz Air became
effective on September 30, 2004, well before Porter Airlines' launch date of
October 23, 2006.
    Air Canada supports Jazz Air's efforts to gain fair and equal access at
Toronto City Airport for all carriers.
    %SEDAR: 00001324EF

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