Canadian Plus and Aeroplan to Become One in 2001

Canadian Airlines and Air Canada announced today that starting in 2001, Canadian Plus and Aeroplan, the two airlines' frequent flyer programs, will be merged into a single program that incorporates the best of benefits, partners and rewards.

Effective January 1, 2001, all outstanding Canadian Plus points will be fully converted to Aeroplan miles on a one-to-one basis. Over the next several weeks, nearly three million Canadian Plus members will be mailed personalised letters detailing the process for converting Canadian Plus points to Aeroplan miles.

``As Canadian Airlines moves towards integration with Air Canada, today's announcement ensures that our loyal customers will continue to enjoy excitingrewards and benefits as members of the Aeroplan program,'' said Paul Brotto, President and Chief Executive Officer of Canadian Airlines.

``We are delighted to welcome all Canadian Plus members into Aeroplan and the Air Canada family,'' said Lise Fournel, Air Canada Executive Vice President, Commercial. ``"Today's announcement marks another milestone, especially for our valued customers, as we move forward towards a successful integration of Air Canada and Canadian Airlines.''

Canadian Plus memberships remain valid until the end of the year.

Canadian Plus and Aeroplan members may currently redeem points on either airline. Commencing in early January 2001, Canadian Plus members, as new members of Aeroplan, will be able to redeem from the combined total of their Canadian Plus points and Aeroplan miles.

Once the two frequent flyer programs are combined, over five million members will be able to earn miles through an extensive network of quality partnerships with hotels, car rentals as well as financial and telecommunications institutions.

Canadian Airlines and Air Canada offer customers an integrated summer schedule, including 32 new routes, 12 destinations and close to 1 000 daily non-stop flights.