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Air Canada Announces Termination of Tender Offers and Consent Solicitations



 Air Canada Announces Termination of Tender Offers and Consent Solicitations

PR Newswire

MONTREAL, June 27, 2013

MONTREAL, June 27, 2013 /PRNewswire/ - Air Canada announced today that it has
terminated its previously announced cash tender offers (the "Offers") and
related consent solicitations (the "Consent Solicitations") with respect to
its 9.250% Senior Secured Notes due 2015, its 10.125% Senior Secured Notes due
2015, and its 12.000% Senior Second Lien Notes due 2016 (collectively, the
"Notes"), which were being made pursuant to Air Canada's Offers to Purchase
and Consent Solicitations Statement and related Letters of Transmittal and
Consent, each dated June 14, 2013.

"The Offers were subject to a financing condition. The recent volatility in
the debt and capital markets which has interfered with the immediate financing
plans of many companies, including Air Canada was such that available terms
were no longer attractive to us.  However, the strength of our balance sheet
and our business overall, and the fact that the Notes do not mature until
August 2015 and February 2016, provides us flexibility to take advantage of a
more opportune time to refinance the Notes," commented Michael Rousseau,
Executive Vice President and Chief Financial Officer of Air Canada.

As a result of the termination, none of the Notes that have been tendered in
the Offers will be accepted for purchase and no consideration will be paid or
become payable to holders of Notes who have tendered their Notes in the
Offers.  All Notes previously tendered and not withdrawn will be promptly
returned or credited back to their respective holders.  All consents
previously delivered and not revoked will be of no effect, and the indentures
governing the Notes will remain in their present form, unamended.

This announcement confirms the formal termination of the Offers and Consent
Solicitations. The Company reserves the right to commence a new tender offer,
or to otherwise redeem or repurchase some or all of the outstanding Notes, at
a later date but is under no obligation to do so.

This announcement is not an offer to purchase, a solicitation of an offer to
sell or a solicitation of consents with respect to the Notes or any new
securities of Air Canada.

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 2012 served close to 35 million
customers. Air Canada provides scheduled passenger service directly to 59
Canadian cities, 53 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.

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 and the capital markets.  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 the 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.

SOURCE Air Canada

Contact:

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

Internet :  aircanada.com
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