AIR CANADA

9,000 Job Reductions at Air Canada and Air Canada Regional; System-wide Flight Schedule to be Reduced by 20 per cent; 84 Aircraft to be Removed from Combined Fleet (55 from the mainline fleet and 29 from the regional carrier) fleet.

Airline is forced to take drastic and unprecedented action in face of catastrophic impact of September 11, 2001 on global airline industry Air Canada advised employees that they are now compelled to lay off a total of 9,000 employees subject to ongoing mitigation discussions with the unions and the government. The carrier also announced an overall network schedule reduction, including that of its regional airline, of 20 per cent. As part of this action a total of 84 aircraft will be removed from the combined fleet.

Robert Milton, President and Chief Executive Officer of Air Canada said "This is a very difficult announcement to make to the dedicated team of women and men who make this airline work. But the catastrophic events of September 11 and their unprecedented impact on the airline industry have left Air Canada, like every other large global carrier, with little choice. In the U.S. alone, industry job losses are already in excess of 100,000.

The job reductions will be implemented within all work groups - management, support staff as well as the unionized workforce.

DELTA AIR LINES

Due to dramatically lower demand for air travel following the September 11 terrorist attacks on the United States and resulting unprecedented financial losses, the company must cut its costs, including employee costs. As a result, Delta will reduce staffing by up to 13,000 jobs across all major work groups over the next few months, with a significant number of these reductions expected to come through voluntary programs.

Demand for air travel since September 11 has dropped precipitously. As a result, Delta will reduce capacity by 15% effective November 1, 2001. The new schedule will be in effect indefinitely due to the uncertainty of future demand for travel.

Leo F. Mullin, Delta chairman and CEO said : "But on that tragic day, war was declared on the United States of America using aviation as the instrument of destruction. As a result, the operational and financial outlook for airlines has changed precipitously and drastic measures are required if we are to avoid becoming the first economic casualty of the war.

SWISSAIR

Swissair Group to restructure its airline activities. The Group is in talks with the Swiss business community and the Swiss Government to recapitalise the Group.

The Swissair Group announced last August a serie of measures, designed to ensure a viable future for a Swiss based aviation company. Recent tragic events in the USA, and in particular their severe implications on the world aviation industry as well as on the general economic outlook, imply that more radical measures are now required. As a consequence, the Swissair Group will fundamentally restructure its airline and related activities, this will necessitate a recapitalisation in the near term.

The key elements of the restructuring effort are:

A completely new business plan based on a new airline - Revised network and fleet planning - A full integration of Swissair and Crossair. Recapitalisation of the Group based on the new business plan Changes in Group management structure

Swissair facts: Number of employees 7.299 / Size of current fleet 76 / Number of destinations/countries 210/75