Consolidates Position as Leading Carrier Linking Canada and South America Air Canada announced that it will launch non-stop flights between Toronto and Santiago Chile, with convenient same plane one stop service continuing on to Buenos Aires, Argentina.

Flights will depart Toronto on Tuesdays, Thursdays and Saturdays beginning December 2, 2003. With a southbound flight time of 11 hours, travellers will save a minimum of two hours off alternate best routings. Flights have been timed to offer customers convenient connections at Toronto's Pearson International Airport to and from many of the cities served by Air Canada throughout its network in Canada, the United States, Europe and Asia.

"We are very excited about the prospect of launching non-stop service to Santiago Chile and returning to Buenos Aires in time to meet peak travel demand during the southern hemisphere summer," said Bill Bredt, Vice President, Network and Revenue Management. "We are seeing an increase in travel demand to and from South America as a result of a strengthening economy as well as the convenience of Air Canada's services for travellers impacted by recent changes to U.S. government visa requirements when transiting via the United States. Together with our popular six-times weekly Toronto-Sao Paulo service, we are consolidating Air Canada's position as the leading carrier linking Canada and South America by offering customers the most convenient
access throughout our network."

The new Santiago/Buenos Aires service will be operated using 209-seat Boeing 767-300 aircraft featuring the carrier's re-designed international Executive First service offering first class comfort, spacious 60-inch pitch and restaurant style service at business class fares.