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Air Canada and Flight Attendant Union Agree on CIRB Resolution Process for Contract Impasse

MONTREAL, Oct. 20, 2011 /CNW Telbec/ - Following the federal Minister of Labour's referral to the Canada Industrial Relations Board of the dispute between Air Canada and the Canadian Union of Public Employees, representing the airline's 6,800 flight attendants, Air Canada confirmed today that both parties have achieved an agreement on a final and binding process to resolve the impasse under Section 79 of the Canada Labour Code.

Under the terms of the agreement, both parties will submit outstanding issues to a process with the final and binding decision to be issued by no later than November 7, 2011. By agreeing to this process, the parties are also bound by the Labour Code requirement that no strike or lockouts may occur.

"Air Canada is pleased to have a process in place whereby we can avoid any disruption of service and eliminate uncertainty for our customers. I wish to thank the Department of Labour, the CIRB, and their staff for their assistance in helping Air Canada and its flight attendant union find a process that will enable both parties to move forward together," said Duncan Dee, Executive Vice President and Chief Operating Officer at Air Canada.

Air Canada is Canada's largest domestic and international full-service airline providing scheduled and charter air transportation for passengers and cargo to more than 175 destinations on five continents.  Canada's flag carrier is the 15th largest commercial airline in the world and serves 33 million customers annually. Air Canada is a founding member of Star Alliance.  For more information on Air Canada visit aircanada.com. Follow @AirCanada on Twitter and Facebook.

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, including those described below. Forward-looking statements cannot be relied upon due to, amongst other things, changing external events and general uncertainties of the business. 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, currency exchange and interest rates, employee and labour relations, 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.


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