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Air Canada concludes financing with GE Capital Corporation for US$80 million; Series of agreements worth up to US$195 million

MONTREAL, Dec. 24 /CNW Telbec/ - Air Canada today announced that it has
concluded a series of agreements for secured financings with General Electric
Capital Corporation (GECC) and its affiliates, providing the airline with up
to US$195 million (approximately C$238 million).
Under the agreements, the amount of US$80 million (approximately C$98
million) was funded today as the first of two tranches of a loan agreement
which would provide Air Canada with US$155 million (approximately C$190
million). The loan matures in 2014. The second tranche of the secured loan is
expected to close and fund prior to the end of January 2009. Funding of the
second tranche of the loan agreement, as well as retention of the funded first
tranche, are subject to certain conditions, including conclusion of a sale and
leaseback of one Boeing 777-300ER aircraft with GE Commercial Aviation
Services (GECAS), a division of GECC.
This sale and leaseback for a lease term of 12 years will, upon
conclusion, provide Air Canada with at least US$40 million (approximately C$48
million) of additional financing.
Full funding under all the agreements would provide Air Canada with
financing of approximately US$195 million (approximately C$238 million).
These agreements represent additional steps in the implementation of Air
Canada's strategy of improving its short term and longer term liquidity
through both traditional and non-traditional means.

CAUTION REGARDING FORWARD-LOOKING INFORMATION
---------------------------------------------

This disclosure may include forward-looking statements within the meaning
of applicable securities laws. Forward-looking statements are based on
assumptions, are subject to important risks and uncertainties and cannot be
relied upon due to, amongst other things, changing external factors and
general uncertainties of the business. Results indicated in forward-looking
statements may differ materially from actual results due to a number of
factors, including without limitation, energy prices, general industry,
market, credit and economic conditions, currency exchange and interest rates,
competition, war, terrorist acts, epidemic diseases, insurance issues and
costs, changes in demand due to the seasonal nature of the business, the
ability to reduce operating costs, employee and labour relations, pension
issues, supply issues, changes in laws, regulatory developments or
proceedings, pending and future litigation and actions by third parties, as
well as the factors (including assumptions) identified in Air Canada's public
disclosure file and accessible through SEDAR at www.sedar.com. Any
forward-looking statements contained in this disclosure represent Air Canada's
expectations as of the date of this disclosure and are subject to change after
such date. 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.
%SEDAR: 00001324EF


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