CUPE says....

[rudder]

Following the Component Executive meeting on April 30 – May 1, 2003, the Union proposed the following terms to the company as a guide in future negotiations. We are presently awaiting a response.

CUPE/ACC Terms of Engagement

1. All stakeholders must participate in the restructuring process and make a fair and equitable contribution.

2. The computation of all stakeholder contributions must be fair, equitable and transparent.

3. CUPE will have the right to verify the contributed shares of all stakeholders, including but not limited to, Air Canada Management, all Air Canada Creditors, and all other Air Canada Unions .

4. Air Canada will protect CUPE Air Canada Component flying, including but not limited to, consideration of fleet configuration, work jurisdiction and corporate structure.

5. Pensions shall not be jeopardized.

6. Air Canada will respect and adhere to the CUPE collective bargaining agreement during the restructuring process, up to and including the point of confirmation of the Plan of Arrangement by the Court under the CCAA.

7. Any interim adjustments to the CUPE Collective Agreement obligations must be treated as a claim and will receive equal treatment with other secured DIP finance creditor priority.

8. CUPE and other Trade Unions will be treated as a separate class of creditor in the Plan of Arrangement.

9. CUPE will have the ability to choose the implementation methodology of CUPE’s fair and equitable share.

10. Air Canada will provide CUPE with full and timely access to all information for each component of the proposed Air Canada Enterprises.

11. Confidentiality will not preclude the use of any information in Court.

12. CUPE will have the ability to communicate with its members and the public regarding CUPE’s contribution to Air Canada’s restructuring.

13. Air Canada will recognize the importance of CUPE’s participation in the restructuring process and will refrain from publicly blaming CUPE ACC for the Company’s difficulties.

14. In light of CUPE’s safety concerns, Air Canada will not support any Regulatory initiative that will reduce the number of flight attendants on an aircraft. Any Regulatory change that affects CUPE will impact CUPE’s share obligations.

May 1, 2003