Air Canada to Transfer 20 Airbus A319s to ZIP

Air Canada today announced that Airbus A319 aircraft will replace the Boeing 737-200 fleet operated by its low cost subsidiary, ZIP, consistent with its restructuring plan to streamline operations by eliminating older, less efficient fleets. Starting in July 2004, ZIP will begin operating Airbus A319 aircraft transferred from the Air Canada fleet as well as their current fleet of 12 Boeing 737-200s. By the end of 2004, ZIP will operate 20 A319s, concurrent with the retirement of all Boeing 737-200s.

"This is a further step in restructuring Air Canada to become a more competitive airline by rationalizing the fleet to achieve increased cost efficiencies through the retirement of older, less efficient aircraft," said Robert Milton, President and Chief Executive Officer. "As part of the restructuring business plan to offer more value-oriented services throughout North America, ZIP is growing to its full fleet plan of 20 aircraft, and is well positioned for strategic growth opportunities in the expanding low fare marketplace."

Information on markets to be served by ZIP is yet to be announced.