For Immediate Release

Title: Air Canada rouge to Offer More Caribbean Destinations this Summer from Toronto and Montreal


22 per cent more seats to the Caribbean than last summer

More flights from Montreal to Cancun, Port-au-Prince and Punta Cana

MONTREAL, Jan. 27, 2014 /PRNewswire/ – Air Canada today announced that its leisure carrier subsidiary, Air Canada rougeTM, is expanding its choice of more Caribbean destinations this summer. Routes previously operated by Air Canada from Toronto and Montreal to Cuba, Dominican Republic, Bahamas, Barbados, Haiti, Cancun and Tampa, FL, will be converted beginning this spring to Air Canada rouge service. Together with its previously announced 2014 summer schedule to Europe, Air Canada rouge plans to operate a total of 44 routes serving 28 popular vacation destinations, including continuation of its summer routes – Athens, Edinburgh and Venice – and new service to Barcelona, Dublin, Lisbon, Manchester, Nice and Rome.

The conversion of additional Caribbean vacation destinations to Air Canada rouge service represents an increase of 22 per cent more seats on these routes to the Caribbean this summer than last. The increase is greatest from Montreal where there will be in an increase of 36 per cent more seats on these routes and 20 per cent more flights than last summer with the introduction of additional flights to Cancun, Port-au-Prince and Punta Cana.

“Customer response to Air Canada rouge for vacation travel has been very positive since it started flying just last summer,” said Ben Smith, Air Canada’s Executive Vice President and Chief Commercial Officer. “The addition of more year-round Caribbean destinations to Air Canada rouge’s network is the next logical step as our leisure carrier enables us to compete on a more cost effective basis on these routes while leveraging the strength of Air Canada Vacations. Air Canada rouge’s Caribbean services complement this summer’s significant expansion to new European vacation destinations including Nice, Lisbon and Manchester, in addition to new service to Milan served year-round by the mainline carrier. The growth of Air Canada rouge, in tandem with Air Canada’s mainline fleet renewal and international network expansion, continues to be a key element of Air Canada’s strategy for sustainable, profitable growth.”

By the end of March 2014, Air Canada rouge’s fleet will include four Boeing 767-300ER aircraft and 13 Airbus A319 aircraft transferred from Air Canada. Air Canada’s mainline fleet renewal is ongoing with the introduction of new aircraft. Air Canada is scheduled to take delivery in February 2014 of the last of five new Boeing 777-300ER aircraft to enter its mainline fleet since June 2013, and the first three of 37 Boeing 787 aircraft by the summer of 2014. Air Canada is scheduled to take delivery of a total of six 787 aircraft in 2014 and the remaining 31 between 2015 and 2019.

For its 2014 summer schedule, Air Canada rouge will operate flights to the following popular vacation destinations available with optional Air Canada Vacations packages. Flights and vacation packages are now available for purchase at aircanada.com and through travel agents:

Europe: Flights from Toronto to: Athens, Barcelona, Dublin, Edinburgh, Lisbon, Manchester and Venice. Flights from Montreal to: Athens, Barcelona, Rome and Nice.

Mexico: Flights from Toronto to Cancun, and Montreal to Cancun*.

United States: Flights from Toronto and Montreal to: Orlando and Las Vegas, and from Toronto to Tampa*.

Caribbean and Central America: Flights from Toronto to: Barbados*, Jamaica (Kingston, Montego Bay); Grenada; Nassau*, Bahamas; the Dominican Republic (Puerto Plata, Punta Cana, Samana); Cuba (Varadero, Cayo Coco, Holguin and Santa Clara) and Costa Rica (San Jose and Liberia).
Flights from Montreal to: Cuba (Cayo Coco*, Holguin* and Santa Clara*); Haiti (Port-au-Prince*) and Dominican Republic (Punta Cana*).

New Air Canada rouge services indicated by an asterisk (*), previously operated by Air Canada’s mainline carrier, will be converted to Air Canada rouge service on a phased-in basis beginning March through May 2014 as additional aircraft are released by the mainline airline for operation by its leisure carrier.

Air Canada rouge operates a fleet consisting of Boeing 767-300ER and Airbus A319 aircraft. The carrier’s aircraft feature three customer comfort options: rougeTM, rouge PlusTM with preferred seating with additional legroom, and Premium rougeTM with additional space and enhanced service on the Boeing 767-300ER and on select Airbus A319 routes. Air Canada rouge offers a unique brand of customer service designed to make every flight a memorable start and end to a wonderful vacation. Aircraft are equipped with player, a next generation in-flight entertainment system that wirelessly streams entertainment to customers’ personal electronic devices. Flights provide stylish and modern cabin interiors with innovative new seats, and the ability to earn and redeem Aeroplan miles. For more information and bookings, visit: http://www.aircanada.com/en/about/rouge.html

About Air Canada

Air Canada is Canada’s largest domestic and international airline serving more than 175 destinations on five continents. Canada’s flag carrier is the 15th largest commercial airline in the world and in 2013 served more than 35 million customers. Air Canada provides scheduled passenger service directly to 60 Canadian cities, 49 destinations in the United States and 67 cities in Europe, the Middle East, Asia, Australia, the Caribbean, Mexico and South America. Air Canada is a founding member of Star Alliance, the world’s most comprehensive air transportation network serving 1,328 destinations in 195 countries. Air Canada is the only international network carrier in North America to receive a Four-Star ranking according to independent U.K. research firm Skytrax that ranked Air Canada in a worldwide survey of more than 18 million airline passengers as Best Airline in North America in 2013 for the fourth consecutive year. For more information, please visit: www.aircanada.com.

About Air Canada rouge

Air Canada rouge is Air Canada’s new leisure airline, part of the Air Canada Leisure Group, along with Air Canada Vacations. Together with Air Canada Vacations, Air Canada rouge offers competitively-priced travel to exciting leisure destinations in Europe and the Caribbean, Mexico and the U.S.: Edinburgh, Venice, Athens, Lisbon, Dublin, Nice, Barcelona, Rome and Manchester and multiple destinations in Mexico, the U.S. and the Caribbean such as Cuba, Costa Rica, Jamaica and the Dominican Republic.

Air Canada rouge began operating July 1, 2013 with a start-up fleet of two Airbus A319 aircraft and two Boeing 767-300ER aircraft. The fleet grew to ten aircraft by the end of 2013 with the addition of six Airbus A319 aircraft and Air Canada rouge plans to add another five Airbus A319 aircraft and two Boeing 767-300ER aircraft by end of March 2014, for a total of 17 aircraft.

As a wholly-owned subsidiary, Air Canada rouge is backed by Air Canada’s 75-year reputation for safety and reliability and Air Canada Vacations’ 30-plus year history of vacation travel excellence. Learn more at www.aircanada.com/rouge or www.facebook.com/aircanadarouge

About Air Canada Vacations

Air Canada Vacations is a leading Canadian tour operator offering a wide assortment of leisure travel packages, cruises, and flights to destinations around the world. A repeat recipient of the Consumer’s Choice Award for Best Travel Wholesaler, Air Canada Vacations services over 100 destinations in the Caribbean, Central & South America, Asia, Europe, and in the U.S. And now, Air Canada Vacations will feature Air Canada rouge on several of its top vacation routes. For more information, visit www.aircanadavacations.com

Caution Regarding Forward-Looking Information

Air Canada’s public communications may include forward-looking statements within the meaning of applicable securities laws. Forward-looking statements, by their nature, are based on assumptions and are subject to important risks and uncertainties. Forward-looking statements cannot be relied upon due to, amongst other things, changing external events and general uncertainties of the business. Actual results may differ materially from results indicated in forward-looking statements due to a number of factors, including without limitation, industry, market, credit and economic conditions, the ability to reduce operating costs and secure financing, pension issues, energy prices, employee and labour relations, currency exchange and interest rates, competition, war, terrorist acts, epidemic diseases, environmental factors (including weather systems and other natural phenomena and factors arising from man-made sources), insurance issues and costs, changes in demand due to the seasonal nature of the business, supply issues, changes in laws, regulatory developments or proceedings, pending and future litigation and actions by third parties as well as the factors identified throughout Air Canada’s public disclosure file available at www.sedar.com. Any forward-looking statements contained in this news release represent Air Canada’s expectations as of date of this news release and are subject to change after such date. However, Air Canada disclaims any intention or obligation to update or revise any forward-looking statements whether as a result of new information, future events or otherwise, except as required under applicable securities regulations.

For further information:

Contacts :
Isabelle Arthur (Montréal) 514 422-5788
Peter Fitzpatrick (Toronto) 416 263-5576
Angela Mah (Vancouver) 604 270-5741

Internet : aircanada.com