Air Canada and American Express Sign Agreements for New Card Partnership

Air Canada and Amex Bank of Canada today announced that they have signed final agreements for their co-branded charge card and Membership Rewards partnership after receiving approval on December 10th from the court overseeing Air Canada's restructuring proceedings.

Aeroplan will become a partner in American Express's Membership Rewards points programs and Amex will issue co-branded consumer and corporate charge cards early in 2004, subject to customary closing conditions being met.

American Express will provide Air Canada with an $80 million cash advance, repaid as Aeroplan Miles are purchased. In addition, American Express committed to provide on-going marketing support throughout the term of the contract.

"Partnering with Amex represents another critical step in the expansion of Aeroplan," said Rupert Duchesne, President and Chief Executive Officer of Aeroplan. "It will also allow Aeroplan to significantly grow its business in Canada and in key international markets. We look forward to introducing, together with our new partner, exciting products that will offer our members additional ways to quickly accumulate valuable Aeroplan Miles."

In addition to partnering in Amex's Canadian Membership Rewards program, Aeroplan will join American Express's U.S. Membership Rewards points program.

Aeroplan also has the opportunity to participate in Membership Rewards programs in other markets, subject to agreement on final terms.

"Today's announcement is such great news," said Beth Horowitz, President and CEO, Amex Bank of Canada. "This partnership is an ideal fit for our brands and our customers, and we look forward to working with Air Canada and Aeroplan to build our mutual businesses over the long-term."

"Partnering with Air Canada and Aeroplan means we'll have one of the best and broadest choices of products in the Canadian marketplace." Horowitz added.

American Express in Canada operates as Amex Bank of Canada and Amex Canada Inc. Both are wholly owned subsidiaries of the New York based American Express Travel Related Services Company, Inc., the largest operating unit of the American Express Company. Amex Bank of Canada is the issuer of American Express Cards in Canada. Amex Canada Inc. operates the Corporate Travel, Consulting, Travel Services Network and Travellers Cheque divisions in Canada.