Air Canada and VARIG Brazilian Airlines expand networks to serve more points in North and South America

VARIG Brazilian airlines and Air Canada are jointly expanding their networks to offer customers easier access to additional destinations in North and South America on a codeshare basis.

Effective December 5, 2002, Air Canada's network will grow to serve Rio de Janeiro, Porto Alegre and Salvador in Brazil as well as Buenos Aires, Argentina and Santiago, Chile on flights operated by VARIG. At the same time, VARIG's network will grow to serve Montréal, Ottawa, Calgary and Vancouver on flights operated by Air Canada. Schedules are timed to offer convenient connections to Air Canada-operated non-stop flights between Sao Paulo and Toronto, offered on a codeshare basis by VARIG.

"Expansion of the Air Canada network to additional markets in South America in cooperation with our valued Star Alliance partner, VARIG, is good for our customers because it improves air access between North and South America while building on our non-stop service between our respective hubs in Toronto and Sao Paulo," said Robert Milton, Air Canada's President and Chief Executive Officer, in Rio at a meeting of Star Alliance chief executives.

"Doing this on a codeshare basis also makes good business sense because it provides a cost effective way to maintain service as well as enter new markets during this challenging economic environment."

"Through this codeshare cooperation, VARIG customers will benefit from convenient access to cities across Canada via Air Canada's main hub in Toronto," said Arnim Lore, VARIG's President and Chief Executive Officer. "The growth in VARIG's partnership with Air Canada reflects the value that Star Alliance brings while linking the most important markets in Canada to the most important markets in the Mercosur economic region, the third-largest trading zone in the world after the EU and NAFTA."

Celebrating its 75th anniversary in 2002, VARIG is Latin America's largest airline, with over 700 daily flights to 70 destinations in Brazil and 24 foreign cities. Renowned for its superior service, VARIG has received numerous awards including having been named Best Airline in Central and South America by OAG on multiple occasions.

Montréal-based Air Canada provides scheduled and charter air transportation for passengers and cargo to more than 150 destinations on five continents. Canada's flag carrier is the 12th largest commercial airline in the world and serves more than 30 million customers annually with a fleet consisting of more than 300 aircraft. In 2002, Air Canada received the prestigious OAG (Official Airline Guide) Awards as Best Airline in North America and Best Frequent Flyer Program for Aeroplan.