Air Canada Announces Management Reorganizatio

[Fido]

Press Release Source: Air Canada; Air Canada - Corporate - Financial

Air Canada Announces Management Reorganization and Reduction of Additional 300 Management and Non-Unionized Positions

Monday July 14, 6:04 pm ET

MONTREAL, July 14 /CNW Telbec/ - Air Canada announced today the reorganization of its executive management team and the reduction of an additional 300 management and non-unionized positions bringing the total management and non-unionized job reduction to 1,100.

"The additional management job reductions are consistent with the realignment of responsibilities at the executive level and our ongoing focus on a leaner, more efficient and cost effective operation," said Robert Milton, President and Chief Executive Officer. "As we restructure the airline to compete profitably in the new environment, we are eliminating a layer of executive management in many areas and pushing more responsibility down to the next level of management. Management ranks will be reduced by more than 25 per cent when the reorganization is completed," he said.

The airline announced the following changes at the executive level:

- Ross MacCormack, Senior Vice President, International & Alliances is

retiring effective September 30, 2003 after 32 years with Air Canada.

The International and Alliances group will report directly to Montie

Brewer, Executive Vice President, Commercial.

- Doug Port, Senior Vice President, Customer Service is retiring

effective September 30, 2003 after 30 years with Air Canada. Effective

October 1st, Brad Moore, currently Senior Director, Inflight Services

will assume the role of Vice President, Customer Service.

- Robin Wohnsigl, Senior Vice President, Air Canada Maintenance, will be

leaving Air Canada to pursue other interests. Effective August 1,

2003, Jon Turner, currently General Manager, Aircraft Programs, will

assume Robin's responsibilities as General Manager, Air Canada

Maintenance and Aircraft Programs.

- Steve Markey, Vice President, Government Relations & Regulatory

Affairs will be leaving Air Canada to pursue other interests. Duncan

Dee, Vice President, Corporate Affairs, will assume direct

responsibility for the government relations and regulatory affairs

portfolio.

- Alice Keung, Vice President, Information Technology and Chief

Information Officer, has left the company to pursue other interests.

Lise Fournel, President and CEO, Destina, will assume, on an interim

basis, the Chief Information Officer portfolio.

"The departing executives have, without exception, all made important contributions throughout their careers with Air Canada and we wish them well as they move into new phases of their careers and lives," said Mr. Milton.

This realignment positions Air Canada as having the least number of vice- presidents of any international network carrier in North America.

As part of the restructuring process, 1,100 management and non-unionized jobs are being eliminated contributing to an overall payroll cost reduction for this employee group of almost 40 per cent. The airline is currently implementing these job reductions on an ongoing basis with approximately 650 non-unionized positions already eliminated and a target for completion by the end of the year.

For further information

Isabelle Arthur (Montréal), (514) 422-5788

Laura Cooke (Toronto), (416) 263-5576

Angela Mah (Vancouver), (604) 654-7022

Internet: aircanada.com