Airline also moves to further simplify baggage policies

    MONTREAL, Sept. 18 /CNW Telbec/ - Air Canada announced today that in
response to decreasing fuel prices the airline is eliminating all second
checked-bag charges implemented this spring and incorporating fuel surcharges
into its advertised base fares on North American flights.
    "Although the cost of fuel remains highly volatile and far above historic
norms, the recent retreat in oil prices is enabling us to reinstate our
previous baggage policy. We are eliminating the second checked bag charge on
North American Tango and Tango Plus fares, reflecting our customers' expressed
preferences. Further, Air Canada is making its pricing more transparent by
removing add-on fuel surcharges for flights within North America and instead
adjusting its base fares to cover the total cost of fuel," said Ben Smith,
Executive Vice President and Chief Commercial Officer. "These initiatives are
made possible by the recent relief from all-time high oil prices and even
though fares will remain dynamic, Air Canada is committed to everyday low
prices and will continue to match the lowest fares in the marketplace."With the measures announced today Air Canada will:

    - Eliminate starting September 23, 2008, the $25 fee for second checked
      bags that was introduced May 15 for Tango and Tango Plus fares within
      North America. Air Canada becomes the first major North American
      carrier to remove second checked bag fees introduced this year to help
      offset record high oil prices.

    - Incorporate into its advertised prices the one-way, add-on fuel
      surcharge that currently ranges between $20 and $60 on domestic and
      U.S. transborder flights. Starting September 18, 2008, Air Canada will
      adjust its published fares to include the total cost of fuel in its
      advertised base fares. This will provide customers simple, transparent
      and low fares always available at www.aircanada.com.

    - Starting October 14, simplify its excess baggage fees by introducing a
      single $75 fee for travel within North America ($100 international) for
      overweight and/or oversize pieces. This new policy replaces the
      standard industry practice of imposing individual fees for each
      situation. For bags exceeding the free allowance, the excess piece fee
      will now include any applicable overweight or oversize fees. A
      10 per cent discount on excess piece fees is offered when fees are paid
      while checking-in online at aircanada.com or at an airport self service
      kiosk.Air Canada will continue to review its policies to determine what
adjustments are to be made so that, against a backdrop of high and volatile
fuel prices, it continues to provide the products and services that respond to
customer demand.

    Montreal-based Air Canada provides scheduled and charter air
transportation for passengers and cargo to more than 170 destinations on five
continents. Canada's flag carrier is the 14th largest commercial airline in
the world and serves 34 million customers annually with a fleet consisting of
335 aircraft. Air Canada is a founding member of Star Alliance, providing the
world's most comprehensive air transportation network for Canadian domestic,
transborder and international travel. Air Canada aircraft offer customers
individualized seatback in-flight entertainment systems with hundreds of hours
of digital audio-visual entertainment. As well, customers can collect Aeroplan
miles for future awards through Canada's leading loyalty program.
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